Directors and officers liability insurance for harbour authorities

Pamphlet
(PDF, 204 KB)

Who is insured?

Directors and officers liability insurance (D&O) applies to anyone who serves as a director or an officer of a harbour authority (HA).

What is insured?

In general, claims can be made against directors and officers for performing actual or allegedly wrongful or negligent acts.

A "D&O Wrongful Act" means any actual or alleged defamation, breach of duty, neglect, error, misstatement, misrepresentation, omission or other act done or attempted by any insured in the discharge of their duties solely in their capacity with the entity or any matter claimed against them solely by reason or their status as an insured person.

What is D&O?

D&O serves as a risk financing mechanism. These risks are, for example, liability type losses for which the directors and officers of a non-profit organization may beheld liable due to wrongful or negligent acts or omissions made against them. These are claims which may arise from the decisions and actions taken within the scope of their regular duties.

Typically, the D&O policy also covers the legal fees and other costs the organization may incur as a result of such a suit.

What are the key exclusions of the policy?

Intentional illegal acts or illegal profits are typically not covered under D&O policies; coverage would only extend to "wrongful acts" as defined under the policy, which may include certain acts, omissions, misstatements while acting for the organization. Due to exclusions and as a matter of public policy, coverage is not provided for criminal fraud. Coverage does not include fraudulent, criminal or intentional non-compliant acts or cases where directors obtained illegal remuneration, or acted for personal profit.

HA employees are not covered under this policy. If an employee becomes injured while performing their duties as an employee of the HA, provincial workers compensation may be available.

Who manages D&O?

D&O is purchased and administered by the Harbour Authority Corporation (HAC), a federally incorporated body working on behalf of HAs. Small Craft Harbour provides a contribution to the HAC to cover a portion of the premium.

Contact

For more information, email the HAC at duplessis.management@gmail.com or phone 1 (506) 625-4556.