- How much does directors and officers (d&o) liability cost in Nova Scotia?
- The cost of directors and officers (d&o) liability in Nova Scotia depends on your specific details, coverage, and deductible. The best way to know is a free quote — as an independent broker we compare 17 insurers to find your lowest price.
- How do I get directors and officers (d&o) liability in Nova Scotia?
- Request a quote online in minutes or call Insurabiz at 613-355-3130. We'll compare our full panel of insurers to find the right directors and officers (d&o) liability for you in Nova Scotia.
- Why use a broker for directors and officers (d&o) liability in Nova Scotia?
- A broker works for you, not one insurer. We shop the whole market at once to find the best directors and officers (d&o) liability coverage and price in Nova Scotia — with local advice and an advocate at claim time.
- What does D&O insurance cover?
- It covers claims alleging that directors or officers committed a wrongful act in managing the organization, such as a breach of duty, misstatement or neglect. It pays defence costs, settlements and judgments. Side A protects individuals when the organization cannot indemnify, Side B reimburses the organization when it does, and Side C usually covers the organization itself.
- Does a small private company need D&O insurance?
- If anyone other than the owner has a stake, usually yes. Investors, minority shareholders, lenders, creditors and employees are the most common claimants against private-company directors. Directors can also face personal liability for unremitted source deductions, GST/HST and unpaid wages. Defence costs arise whether or not the claim succeeds, and the company may not be able to pay them.
- Can directors be personally liable for unpaid payroll remittances?
- Yes. Under section 227.1 of the Income Tax Act, directors at the time are jointly and severally liable with the corporation for source deductions it failed to remit, plus interest and penalties. A director who exercised the care, diligence and skill of a reasonably prudent person to prevent the failure has a defence. Action must start within two years after they ceased to be a director.
- Are directors liable for unpaid employee wages?
- Yes, within limits. The Canada Business Corporations Act, Ontario's Business Corporations Act and Ontario's Not-for-Profit Corporations Act make directors liable for up to six months of unpaid wages per employee. Ontario's Employment Standards Act also allows up to 12 months of accrued vacation pay. Termination and severance pay are not included under the ESA.
- Do non-profit directors need D&O insurance?
- Yes. Volunteer directors of non-profits and charities can be sued by members, donors, funders and employees, and Ontario non-profit directors can be personally liable for unpaid wages. Prospective directors often ask for it before they agree to serve. Ontario charities may buy it, provided the board first weighs factors such as cost against the risk and available revenue.
- What is the difference between Side A, Side B and Side C?
- Side A pays directors and officers directly when the organization cannot or will not indemnify them, such as in insolvency. Side B reimburses the organization after it indemnifies them. Side C covers claims against the organization itself. All three usually share one limit, which is why some boards buy a separate Side A limit for themselves.
- Isn't the company's indemnity enough?
- Not on its own. Corporate statutes let a corporation indemnify directors, but only if they acted honestly and in good faith in its best interests. Indemnity for actions brought by the corporation itself needs court approval. And an insolvent company cannot pay. D&O insurance fills those gaps, and the same statutes expressly permit the corporation to buy it.
- Does D&O cover wrongful dismissal claims?
- Usually not on its own. Most D&O wordings exclude or limit employment claims, which are covered by employment practices liability, often sold in the same management liability package. It responds to claims such as wrongful dismissal, discrimination and harassment against the organization and its managers. Confirm it is included if you have employees.
- What happens to D&O coverage if the company is sold?
- A change of control usually ends cover for new acts, and the policy converts to run-off for wrongful acts before the sale. Claims about the old board's decisions can still arrive years later, so directors should negotiate a run-off period, commonly several years, as part of the transaction, paid for before closing.
- How much does D&O insurance cost?
- Premium depends mainly on the organization's financial strength, ownership and investors, industry, governance, employee count, claims history, and the limit and retention chosen. Losses, tight cash and planned financings increase the rate. Non-profits are rated on budget, funding and activities. We compare 17 insurers so you see how each rates your organization.
