Compare Directors and Officers Insurance

You could save thousands of dollars by getting multiple directors and officers insurance quotes and comparing prices.

Get up to three directors and officers insurance quotes by answering a few questions

How to shop for your next directors and officers insurance policy on Hardbacon

Comparing the prices of several insurers before choosing a directors and officers insurance policy can generally save hundreds of dollars a year. Follow these 4 steps to get quotes.

Tell us where you're located

The first step is to enter your province in the box on the left, then click on “Compare”. Your location will enable us to redirect you to the appropriate partner.

Tell us more about your business

The second step is to complete our partner’s form, which will begin by asking for the title of your profession, your gross revenue, the number of employees you have and your experience. It will also inquire about hiring exterior contractors.

Specify the risks involved

The third step is to answer questions about where you do business, if your work is related to industries such as cannabis, construction, petrochemicals, as well as other things you might do such as renting cars, visiting clients in their home, giving tax advice or conducting laboratory tests.

Finalize your request

The fourth and final step is to indicate your address, the proprietorship structure and the legal name of your business. At this stage, you will be able to choose if you want other protections on top of directors and officers insurance. Once you submit your application, the quotes will appear on your screen.

Tips to save on your next directors and officers insurance policy in Canada

Find the right insurer for your organization

Every business has its own particularities, and some insurers are more comfortable with certain types of businesses. Some specialize in private companies, while others are very familiar with non-profit organizations. You should find a broker who specializes in your business sector and is familiar with the risks involved. They’ll be in the best position to understand your needs and offer a good premium.

Shop around for your insurance

Insurers are very competitive with each other. It’s therefore advantageous to get quotes from several companies or to find an insurance broker who’ll do it for you. If you have a company vehicle, bundling your insurance could possibly help you save money. While shopping, do not hesitate to ask which insurers offer discounts to members of your professional association, if you belong to one.

Increase your deductible

The deductible is the amount you’ll need to pay in the event of a claim. Normally, by increasing your deductible, you’ll lower your premium. You’ll have to pay a little more when making a claim, but this strategy can pay off very well if you don’t make a lot of claims.

Reassess your needs

Having coverage tailored to the real risks facing your business will ensure that you pay an amount proportional to your actual needs. You can always modify the contract as your business evolves over time. Remember, the higher the coverage amount, the higher your premium will be.

Frequently asked questions about directors and officers insurance

How much is directors and officers insurance?

The cost of directors and officers insurance can vary widely depending on factors such as the size of the organization, its industry, the coverage limits, and the risk profile of the board members and officers. Premiums for these insurance policies can range from a few hundred dollars to several tens of thousands of dollars annually. Generally speaking, you can expect to pay between $500 and $10,000 annually for $1 million in coverage. The lowest premiums are for smaller and very low-risk businesses.

Do I need directors and officers insurance?

While directors and officers insurance is not legally required for all businesses, it is highly advisable where individuals serve as directors or officers. In Canada, directors and officers insurance is required by law for some nonprofits and private companies. These organizations should have at least $2 million of coverage. This insurance provides financial protection for these individuals in case they are personally sued for alleged wrongful acts while managing the organization. Without this insurance, personal assets could be at risk. Therefore, it is relevant if your business has a corporate board, a board of directors, or an advisory committee.

What is directors and officers insurance?

Directors and officers insurance, often abbreviated as directors and officers insurance, is a type of liability insurance that provides protection to individuals who serve as directors, officers, or executives of an organization. It safeguards their personal assets in case they face legal claims or lawsuits alleging wrongful acts or mismanagement in the course of their duties.

What does directors and officers insurance cover?

Directors and officers insurance typically covers legal defense costs, settlements, and judgments resulting from claims against directors and officers for alleged breaches of fiduciary duty, negligence, employment malpractice, inaccurate disclosures, regulation violations, or other wrongful acts. For example, it could prove useful if several employees claimed your management team created a hostile work environment, violated regulations, and delivered poor governance.

How do I get directors and officers insurance?

To get directors and officers insurance, use an online tool to compare quotes. Then, contact insurance providers and brokers that specialize in commercial insurance. You should know that it is typically the organization that purchases this type of insurance. These providers will assess the organization’s specific needs and risks and offer policies tailored to those requirements.

How much directors and officers insurance do I need?

The amount of directors and officers insurance should be at least $2 million. For a non-profit, there is no need for coverage in excess of $5million. The amount of coverage a private company needs depends on various factors, including its size, industry, financial condition, and potential exposure to liability. A thorough risk assessment is essential to determine appropriate coverage limits.

Do nonprofits need directors and officers insurance?

Yes, nonprofit organizations need insurance as much as private companies. It is not mandatory for all organizations, but it is for some (such as condominium association board members). All nonprofits can benefit significantly from directors and officers insurance, as it helps protect their board members and officers from personal liability in case they are sued for alleged wrongful acts or mismanagement.

How is directors and officers insurance rated?

Directors and officers insurance is rated based on several factors, including the organization’s size, industry, financial stability, claims history, and coverage limits. Factors that go into your directors liability insurance quote also include experience in the industry and financial position. Insurance underwriters use these factors to determine the premium amount that the organization needs to pay.

How much nonprofit directors and officers insurance do I need?

The amount of directors and officers insurance needed for nonprofits depends on the organization’s specific circumstances and risk exposure. Nonprofits should consider their board’s composition, financial assets, and potential liability risks when determining coverage limits. Generally speaking, a $5 million coverage should be enough.

Who is covered under directors and officers insurance?

Directors and officers insurance is a liability insurance for individuals serving as directors, officers, and executives of an organization. Most insurers also extend their coverage to protect former directors and officers who left your company a few months ago. These insurance policies typically don’t cover claims of criminal, fraudulent, or intentional non-compliant acts. Additionally, cases for bodily injury and property damage are not covered under directors and officers insurance.

Is directors and officers insurance the same as professional liability?

Directors and officers insurance is a type of liability insurance, but it should not be confused with professional liability insurance. They are not the same. While the former primarily covers claims related to the decisions and actions of an organization’s leaders, the latter is known as errors and omissions insurance and typically covers claims related to professional services provided by individuals or firms. Choose the type of insurance most appropriate to your job or title.

Is directors and officers insurance worth it?

Directors and officers insurance is often considered worth the investment, as it provides crucial protection for the personal assets of board members and officers who may face legal claims in the course of their duties. Without this coverage, individuals may be personally liable for legal expenses and judgments, potentially putting their financial well-being at risk. It offers peace of mind and helps attract qualified individuals to serve on boards and in leadership roles.

Compare Directors and Officers Insurance

You could save thousands of dollars by getting multiple directors and officers insurance quotes and comparing prices.

Get up to three directors and officers insurance quotes by answering a few questions