Get experience on your side Private Companies Directors and Officers Management Liability Insurance
Private Companies Directors and Officers Why you need management liability insurance Professionals from every industry spend years attaining their expert status and reputation. They deliver skilled services and offer specialized advice in a competitive market, which demands the highest possible standards. You need to attract and retain the most qualified directors to your organization, and protecting them against risk is a strong incentive. With ever-increasing litigation resulting in larger and more frequent damage awards, it s more crucial than ever to safeguard you, your directors and officers, and your business from allegations of negligent acts. PrivatePlus, the ultimate in management liability insurance, protects against these threats, whether or not they have merit. Today, directors and officers can benefit from the security of ENCON s 40+ years as one of Canada s leading providers of liability insurance. Unlike other areas of potential loss, it s difficult to predict the nature of claims against directors and officers.
There is a broad range of exposures for which you may become personally liable. The comprehensive nature of PrivatePlus reduces your potential as a target, discourages unmerited suits, and promotes negotiations and settlements, as opposed to lengthy litigation. ENCON s experts are dedicated to providing the most current and competitive products, designed specifically with the unique needs of your business in mind, and delivered to you through ENCON s Canada-wide broker network. PrivatePlus was developed to provide the comprehensive liability coverage that you, and your company, need. Examples: Directors of a company were held personally liable for unpaid wages as well as unremitted source deductions and taxes following its bankruptcy. Following the dismissal of a senior employee, several directors were sued by the individual for defamation after the release of an all staff memo describing the dismissal. When an employee died, several directors were sued by the employee s spouse for failing to increase the limit of the death benefit as had been previously agreed. Officers of an insolvent company, who told suppliers when we get paid, you get paid, were held personally liable.
The Myth 18% It s a myth that the only threat you face is from shareholder suits 82 per cent of legal action is undertaken by employees, competitors, customers and clients, contractors, previous owners, creditors, government agencies and regulatory agencies. 82% Discover the ENCON difference With ENCON, you ll be certain that your business and your key executives are well protected by affordable and flexible insurance programs. PrivatePlus provides far more than just coverage for defence, settlement or judgment costs. Our entire team from your broker to our industry analysts, claims experts to defence counsel is dedicated to providing smooth, efficient service and ongoing support for you. PrivatePlus offers: Directors and officers liability insurance, covering a broad range of exposures for which directors and officers may be held personally liable, including the following allegations: inducing breach of contract tortious conspiracy defamation misrepresentation non-disclosure breach of duty of care bankruptcy-related claims Entity coverage. Two-year policy option.
Only 18 per cent of claims against directors and officers are shareholder-driven. PrivatePlus offers continued Non-Profit outside directorship, covering your directors, officers, and employees against claims while sitting as a director of a non-profit entity, provided that such position is held at the request of your company. Employment practices liability, including coverage for allegations of wrongful termination, demotion or failure to promote, discrimination, harassment, employmentrelated misrepresentation, wrongful discipline and retaliatory treatment. Fiduciary liability, covering claims arising from the management or administration of your company s benefits plan, including pension, medical and dental plans. Professional services liability, covering claims against your employees in their professional capacity as lawyers or accountants, with respect to duties performed on behalf of your corporation. Broad pollution coverage. Broad definition of claim includes non-monetary relief. Guaranteed pricing for six-year run-off. Affirmative coverage for Initial Public Offering road show. 50 per cent asset reporting threshold for new subsidiaries. Efficient and accurate processing of applications, quotes, and policy documents. Efficient and effective claims service. The security of first-class insurers.
Get ENCON s experience on your side Management liability insurance is an integral part of any risk management program and ENCON is your ideal partner. As one of Canada s industry leaders, we provide our clients with specialized insurance products and an extensive network of legal counsel and experts skilled in loss prevention and defence of professionals. We are committed to ongoing research and development of new ideas and programs. We understand the complexity of claims against directors and officers, thus enabling us to provide expert representation on your behalf. By getting the right experience on your side, you will benefit from ENCON s expertise, coverage and service. Just as importantly, you will enjoy peace of mind, so that you can concentrate on sustaining your business success.
Claims Service Naturally, we hope that you never have to find out just how well we manage our clients claims. However, be assured that ENCON is renowned for the efficient and effective defence of our clients. The depth of our international team of analysts, adjusters and legal counsel ensures that your claims are managed proactively, from your first contact with us. Regardless of your field of expertise or the complexity of your claim, we have access to some of the best advice in the business. Although many claims take the form of lawsuits, where possible, ENCON tries to resolve the situation through discussion, negotiation, mediation and arbitration. It s our experience, that this approach can help settle claims effectively, while respecting both your directors and officers privacy, and the corporation s confidentiality. You can be certain that ENCON s legal counsel will achieve the best possible result, with the least possible inconvenience to you. You can be confident knowing that you can continue to manage your business without worrying about managing your claim. We are also conscious of the influence claims can have on your program costs, and will work with you to minimize any impact on these.
Protect your business and ensure your peace of mind Talk with your broker today about your management liability needs. Learn more about effectively implementing PrivatePlus to fully protect your directors, officers and corporation. For more information, or a competitive quote, please contact your broker. This brochure is for illustrative purposes only, and is not a contract. Please remember that only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions. Program availability and coverage are subject to individual underwriting criteria. As a leading managing general agent in Canada, ENCON Group Inc. develops and administers insurance programs and distributes them through a nationwide network of independent plan advisors and brokers to individuals, professionals, organizations and employers. ENCON Group Inc. Ottawa, Ontario www.encon.ca 2013 ENCON Group Inc.