Management Liability Insurance

office manager typing on computer keyboard
Busy male office manager sitting in light office and typing on computer keyboard

As a leader of a corporation, you take on a high level of risk, as you may be held personally liable for alleged wrongdoings in managing the company.

Management Liability insurance, or Directors and Officers (D&O) insurance, is designed to protect your corporation’s directors and officers from personal financial loss that may result from lawsuits alleging wrongful acts or mismanagement carried out in their appointed capacity.

Who should consider management liability insurance?

Directors and officers of both private and non-profit Canadian corporations should consider management liability insurance.

  • Development-stage corporations, without operations or revenue
  • Newly incorporated entities
  • Privately held corporations with a single shareholder
  • Charities and foundations
  • Social advocacy groups
  • Business and professional associations
  • Organizations in healthcare, social services, advocacy, culture, and recreation

How can management liability insurance protect your business?

In your role as director or officer of a corporation, you may face allegations of wrongdoing and misconduct. This can include:
  • Accusations of mismanagement
  • Breach of fiduciary duties
  • Misrepresentation to stakeholders, creditors, and others
  • Failure to comply with federal or provincial laws and regulations governing environmental practices, occupational health and safety, employment practices, and human rights
In these situations, management liability insurance can help protect your personal assets. It can also help protect the financial and reputational interests of your corporation. In the long term, management liability insurance can help attract and retain qualified executives and board members. At Northbridge, your management liability policy can include additional coverage, such as pension fiduciary liability, civil and criminal fines and penalties, and workplace misconduct business income loss.

Manage your risk with Northbridge

As a leader, you face many different challenges every day. Our team of experts can help assess your risks and tailor a management liability policy to help protect you. They can also work with you to develop a risk management program that can help prevent future losses to your organization. Visit our Risk Services page today to learn more.

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