The Directors and Officers Insurance experts for Arts Groups

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(D&O insurance webinar for arts group BC Alliance for Arts + Culture, February 2020)

Directors can be held liable for acts committed by other Directors, simply because they sit on the same board. Such damages can extend to the entire personal estate of the Director involved.

Canadian directors and officers insurance should be a requirement before you decide to join a non-profit board. The Canada Business Corporation Act imposes many responsibilities on a Director or an art group board – even if they are volunteer. The breach of any of the responsibilities, if it leads to financial loss to the arts group, can be grounds for an action for damages. Many of these risks can be transferred through D&O insurance.

It is not uncommon for many claims to be unjustified or unfounded; however, the costs associated with their investigation and defense are often substantial. Our D&O insurance for arts groups will provide money for defense costs.

Allegations Commonly Made And Which Have To Be Defended By Directors Include:

Acting beyond the scope of their authority
Giving wrong or unprofessional advice
Breach of fiduciary duties
Failure to police the corporation or supervise subordinates properly
Improper or excessive board spending
Unauthorized board borrowing
Conflict of interest

D&O Allegations Are Most Likely To Occur Following:

Acquisitions/divestitures
Mergers
Foreign partnerships (especially in the USA)
Lack of growth, improper handling of negotiations
Mismanagement or waste of art group assets
Employee dismissal
Board dispute
Breach of contract
Liquidation of the art group

We offer D&O indications within one business day of contacting us. Typical premiums range between $300 and $600 annually for $1M of coverage.