Marsh Canada is pleased to broker Directors and Officers Liability insurance and Commercial Office Package insurance for members of the Canadian Society of Association Executives (CSAE). With over 400 CSAE members currently participating in the directors and officers (D&O) liability insurance program, you know the coverage being offered is competitive.
Members of the CSAE need specific insurance coverages for their organizations — particularly Directors and Officers, and the Commercial Office Package which also provides general liability coverage.
Remember: The Commercial Insurance Program is recommended by the CSAE and offers discounted premium rates exclusively for members of the CSAE.
Directors and Officers Liability Insurance
Directors and Officers Liability insurance provides management liability coverage for insured persons including the organization/association with respect to claims first made against them during the policy period for a wrongful act allegedly committed by the insured persons in their capacity as a director or officer of a not for-profit organization.
Why do we Need Directors and Officers Liability Coverage?
- As elected directors and officers, your board members are responsible for the internal management of your association. As such, you may be exposed to personal liability when mismanagement occurs.
- Mismanagement may take the form of breach of fiduciary duty, breach of duty of care, wrongful activities, or in situations where statutory liability applies.
- Legal action against your board members may be initiated by an employee, association member, supplier, creditor, regulatory body, or various other third parties.
- Claims may be pursued for situations involving wrongful dismissal, discrimination, misleading reports, failure to deliver services, inefficient administration, libel and slander, conflict of interest, or waste of organizational assets.
What is Covered Under the CSAE Directors and Officers Liability Policy?
Policy Form — Claims-made.
- Insured Persons — Policy covers any persons who were or are directors, officers, employees, volunteers, trustees, and any duly constituted committees of the corporation.
- Scope of Coverage — Broad definition of wrongful act, penal defense cover. Coverage extended to outside directorship liability when serving as a director of an outside entity.
- Employment Practices Liability — Provides protection for claims arising against you from your employees or former employees caused by allegations such as wrongful termination, discrimination, or harassment.
- Security and Privacy Liability ($250,000) — Protects the organization against third party cyber liability exposures:
- Network Security Liability — Liability to a third party as a result of a failure of your network security to protect against destruction, deletion, or corruption of a third party’s electronic data, denial of service attacks against internet sites or computers, or transmission of viruses to third party computers and systems.
- Privacy Liability — Liability to a third party as a result of the disclosure of confidential information collected or handled by you or under your care, custody, or control. Includes coverage for your vicarious liability where a vendor loses information you had entrusted to them in the normal course of your business.
- Electronic Media Liability — Coverage for libel, slander, copyright infringement, and domain name related to material on the institution’s website or off‑line publications.
How Premiums are Determined
Premiums are based on your association’s annual revenues and the desired limit of insurance (options available from $1 million–$5 million). Pricing starts from $500 annually.
Commercial Office Package Insurance
The Commercial Office Package is designed to protect the office exposure of your organization. The policy consists of coverages including property, general liability, money and securities, and employee dishonesty.
Coverage Highlights
(additional limits available upon request)
Commercial General Liability - $2,000,000
Tenants Legal Liability - $2,000,000
Property of Every Description — All Risks - $25,000
Employee Dishonesty - $25,000
Money and Counterfeit Paper Currency - $10,000
Computer Systems Fraud - $10,000
Hacking Event/Computer Virus Attack - $10,000
Fundraising Expenses - $25,000 per occurrence/$25,000 aggregate
Event Cancellation Coverage - $50,000
Property In Transit - $50,000
Exhibition Floater - $100,000 per occurrence
Donated Good at Premises of Employees/Volunteers - $500 per item/$5,000 any one location
How Premiums are Determined
Premiums start from $750 for the basic package (including coverages listed above). Each organization has the option to tailor their insurance program to further address specific needs. Changes may reflect a need for a higher limit of insurance, or the addition of a coverage item not otherwise included.