Do Nonprofit Organizations Need Directors and Officers Insurance?

When you serve on a board for a nonprofit organization, you assume a responsibility to the organization’s members, partners and other stakeholders. Unfortunately, with that responsibility comes exposure to accusations of wrongdoing. While some may think a lack of profit-oriented shareholders means reduced legal risk, lawsuits against nonprofit leaders are increasing dramatically. By securing nonprofit D&O Insurance to supplement your Professional Liability Insurance, you can protect your personal property and reputatio

Why Purchase D&O Insurance?

When stepping into a leadership role, it is important to ensure your personal assets are protected. D&O Liability Insurance protects you and your family in the event that a supplier, customer or investor were to bring a lawsuit claiming management wrongdoing on your part. By protecting yourself with D&O Insurance, you will be covered for legal fees, settlements, and other associated costs of the lawsuit, up to policy limits. These costs can often reach hundreds of thousands of dollars.

The Best Small Business Insurance in Canada

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Understanding Liability Insurance for Directors and Officers.

Are you thinking of starting a business? Or do you already have an established small business in Canada and it’s time to renew your liability insurance policy?

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Business insurance is essential for small businesses for many reasons, not the least being financial protection if the unexpected goes wrong.

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What is Small Business Insurance?

Small business insurance is any type of business insurance that you may require for your specific business. For example, business liability insurance protects business owners against losses that could occur in your daily operations, including third party bodily injury, property damage, and errors and omissions.

Business owners have many options for insurance. The type of insurance you need depends on many factors such as industry, revenue, and size.

EasyCover specializes in professional liability insurance in Canada, but we also offer other types of insurance to protect your livelihood.

Is Small Business Insurance Mandatory in Canada?

Canadian law does not require you to have a business insurance policy but it’s highly recommended in most industries to protect your business reputation and your finances. Insurance is a smart choice, especially for small-business owners who may not have the money to pay for legal defense fees if they are sued.

It’s time for you to get the right insurance coverage with EasyCover to prevent potential financial problems that could lead to bankruptcy.

Why Do You Need Small Business Insurance in Canada?

Is your Canadian-based small business covered by adequate insurance? Can your business withstand disruptions caused by floods, fires, and other potential hazards? Are you covered if you give professional advice that causes damage to another business?

These are just a few examples of the risks that small business owners need to be aware of.

As a business owner, you may also need coverage for:

Proof of insurance: potential or current clients may ask for proof of insurance before they do business with you.
Event hosting
Rental property
Loans: you may need to provide proof of insurance coverage to get a business loan.

Our broker experts help you find the right insurance solution for your needs.

What are Different Types of Small Business Insurance in Canada?

There are many types of business insurance coverage options you can include in your policy, depending on your business needs. EasyCover offers insurance coverage for:

Commercial General Liability Insurance (CGL)

Commercial general liability insurance protects your business from being held liable for personal injury, property damage, bodily injury or advertising injuries caused by your business activities. This coverage protects you in the case you are sued for negligence due to your business activities.

Professional Liability Insurance (Errors & Omissions)

Professional liability insurance protects you from lawsuits (fees, settlement costs, etc.) if you give professional advice or services to clients. While in many industries PLI insurance is not mandatory, several professions, including accounting, consulting law, and engineering are required by law to have this type of insurance.

Directors and Officers Insurance

Directors and officers’ liability insurance covers legal defence, indemnification, and losses against individuals who serve as directors or officers for the board of any corporation, for-profit or not-for-profit. Directors and officers could be held liable for actions like a breach of common law duties or negligence, breach of fiduciary duty to shareholders, or violation of federal or provincial laws.

Cyber Liability Insurance

Cyber insurance can protect your business financially from cyberattacks and other hacking threats. While it does not prevent cyberattacks, it will help you to cover associated costs, including their resolution. It also covers data restoration costs.

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How Much Does Small Business Insurance Cost in Canada?

The type of business you are insuring will affect the cost of your small business insurance. Because every small business is different, insurance costs for small businesses can vary. Your company’s size, experience, industry risk, and payroll all play a role in determining the cost of small business insurance.

Our small business insurance brokers are ready to offer you free business insurance quotes along with some expert advice!

Small Business Insurance in Canada: FAQs

How much small business insurance in Canada coverage do I need?

As your business coverage goes up so does your premium. The general rule of thumb is to obtain as much coverage as possible if you can bear the cost. Many businesses regret choosing the cheapest coverage when they must file a claim. Consider the risks your business may be exposed to and your budget. At the same time, try not to overpay for coverage options that your business doesn’t need.

Do I need to have Small Business Insurance in Canada if I work from home?

Some personal home insurance policies may cover personal items such as a printer or monitor, but there may be exclusions that do not cover items used for business purposes. Your home insurance will not cover you for any damage to your home, or the loss of equipment that could prevent you from working.

What mistakes do business owners make when buying business insurance?

Other than over-insuring or under-insuring, many business owners make critical errors that lead to them paying more for insurance. First, you shouldn’t be content with purchasing all your insurance (personal or commercial) through the same provider unless there is a compelling reason to do so. Compare quotes to find the best deal.

Don’t accept the first policy that your broker offers you. Although you may believe your broker is looking out for your best interests, keep in mind that brokers can collect commissions on policies they sell. Some brokers also have relationships with providers.

Get Protected With EasyCover

As one of the first online professional liability insurance portals in Canada, EasyCover makes protecting your assets and reputation easier than ever.

Using our convenient online platform, you’ll be able to:

Get free, instant quotes on Professional Liability and D&O insurance
Apply for, pay for, and print your policy in minutes
Chat with claims specialists online for free
Secure comprehensive coverage at competitive rates

Start protecting your most valuable assets today. Get your free, instant quote now.

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