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Directors and Officers (D&O) Insurance Solutions with LMBF

Directors and officers liability insurance, otherwise known simply as D&O insurance, is an insurance policy that is designed to protect your organization or enterprise’s directors and officers from personal losses resulting from lawsuits or allegations of breaches of duty, wrongful actions, and mismanagement. D&O insurance may cover legal fees and additional costs incurred by the organization or individual due to a devastating lawsuit. LMBF is here to help preserve your peace of mind and wants to protect your business with uniquely tailored directors and officers insurance. Start with a free directors and officers liability insurance quote.

What D&O Insurance Covers

Financial Losses

Financial Losses

Directors and officers insurance is designed to cover directors and officers or their company in the event they are sued and may cover any financial losses associated with a lawsuit.

Legal Fees

Legal Fees

D&O insurance is coverage intended to protect your organization or individuals from financial losses, such as any legal fees they may find themselves having to pay in order to defend themselves in a court of law.

Settlements

Settlements

If your company’s director or officer was found guilty for mismanagement, breaching their fiduciary duty, or other error, your D&O insurance can cover any settlements awarded to the other party that you are required to pay.

  What D&O insurance covers
  • Breaches of fiduciary duty
  • Lack of corporate governance
  • Reporting errors
  • Failure to comply with regulations
  What D&O insurance excludes
  • Fraud
  • Lawsuits between managers
  • Criminal activities
  • Physical losses

What is directors and officers liability insurance?

D&O insurance is an essential insurance policy that applies to anyone whose business utilizes a director or officer for either a non-profit or a for-profit business. D&O is designed to insure against personal losses, such as financial losses, legal fees, and awarded settlements when the insured person or company is held liable. Popular allegations may include creditor claims, failure to comply with regulations, mismanagement, and more.

Directors and Officers Insurance for These Business Sectors:

D&O insurance is commonly misunderstood and too few businesses - whether for-profit or nonprofit - understand the importance of this type of policy. Businesses of all sizes face the risk of lawsuits, and many business owners fall under the misconception that small businesses will never be sued. Unfortunately, the smaller the company, the more vulnerable they are to damaging lawsuits due to the lack of financial resources. Below are some samplings of the various business sectors and individual businesses that may benefit from directors and officers liability insurance.
Financial Industry

Financial

  • Commercial banks
  • Insurance brokerages
  • Financial advisors
  • Accountants & bookkeepers
More info
Real Estate Industry

Real Estate

  • Estate agents
  • Real estate developers
  • Property management
More info
Construction Industry

Construction

  • HVAC construction
  • Commercial construction
  • Residential construction
  • Demolition
  • Electrical installers
  • Highway construction
More info
Maintenance Industry

Personal Services

  • Garage repair shops
  • Autobody stores
  • Auto servicing
More info
Education Industry

Education

  • Online courses
  • Driving schools
  • Primary education
  • Universities
More info
Manufacturing Industry

Manufacturing

  • Metal manufacturers
  • Autobody part manufacturers
  • Chemical manufacturers
  • Food manufacturers
More info
Transportation Industry

Transportation

  • Airlines
  • Freight road transportation
  • Courier companies
  • Railways
  • Trucking companies
More info
Organizations Industry

Non-Profit

  • Chairities
  • Organizations
  • Fundraisers
More info
Agriculture Industry

Agriculture

  • Hobby farms
  • Commercial farms
  • Beef farms
  • CBD plantations
More info
Entertainment Industry

Entertainment

  • Bowling alleys
  • Amusement parks
  • Theatres
  • Arcades
  • Minigolf
More info
Healthcare Industry

Healthcare

  • Occupational therapists
  • Counselors
  • Massage therapists
  • Dentists
More info
Retail Industry

Retail Industry

  • Liquor retail
  • Grocery retailing
  • Furniture retailing
  • Garden supplies retailing
  • Auto parts retailers
More info
Hospitality Industry

Hospitality

  • Hotels and motels
  • Travel agents
  • Lodging agencies
More info
Publishing Industry

Publishing

  • Printers
  • Publishers
More info
Personal Care Industry

Personal Care

  • Hair salons
  • Weight loss services
  • Nail spas
  • Dry cleaners
More info
Wholesale Distribution Industry

Wholesale distribution

  • Agricultural machinery wholesale
  • Audio and video equipment retailers
  • Bakery product wholesale merchants
More info
Professional Services Industry

Professional Services Industry

More info

Our Directors and Officers Liability Insurance Partners

D&O insurance can look very different depending on the provider you go with, the amount of coverage you choose, and what your company wants to purchase. Thanks to its partnerships with top carriers of directors and officers liability insurance in Canada, LMBF has access to a number of quality-rated carriers who can help you identify your D&O insurance needs and select coverage that is fitted to your business’ operations and needs.

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Want to Get Started on Your Directors and Officers Insurance? Start with a Directors and Officers Insurance Insurance Quote.

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Directors and Officers Insurance: Frequently Asked Questions

A: The cost of D&O insurance will depend on your organization. When revenue is out of the question for non-profits, your costs are likely to depend upon the size of your operation, your board of directors, how long you’ve been around for, your insurance history, what your organization does, and so on.

A: In many locations in the world, D&O insurance is not a mandatory purchase. Note, however, that the costs that are associated with a potential D&O lawsuit can be astronomical and create a necessity for this insurance coverage for many businesses. D&O insurance can help businesses recover from what may otherwise have been door-closing losses.

A: The insuring agreement for E&O insurance and D&O insurance looks extremely similar, as both policies cover lawsuit expenses due to wrongful acts. Consider this: if you were offering professional legal advice to a client and you made a mistake that led to a claim,, that would qualify for an E&O claim. However, as the same attorney, if you sat with a board of directors and a shareholder had accused you of using your status for wrongful business, that claim could be filed under your D&O insurance.

A: D&O insurance coverage may vary depending on your provider and exact policy, and “wrongful acts” can encompass a large variety of claims. Those include unfair trade practices, conflicts of interest, wrongful interference with contracts, breaches of duty, protection violations, and violations of federal or state laws.

A: It is not a necessity to have a D&O insurance plan, but it is highly recommended. Lawsuits can be devastating to any line of business - for-profit or not. If your business has a board of directors and officers, you should consider purchasing D&O insurance to preserve your bottom line.

A: It depends. The needs of your business will vary depending on your industry, whether you’re a for-profit organization or a non-profit, what you do, your budget, and more. The average coverage amount of D&O coverage for enterprises that have a revenue of under $50 million a year is between $1 million and $2 million worth of coverage. Discuss with the experts from LMBF if you need help determining your overall coverage needs.