Directors and Officers Liability Directors and officers have a duty to exercise due diligence in overseeing the management of the organization that they serve. They are required to act in good faith and in the best interest of the organization. Claims or potential claims must be promptly reported. 3 Basic DutiesDirectors and officers have a duty to exercise due diligence in overseeing the management of the organization that they serve. This involves 3 basic duties:Duty of Diligence (Duty of Care): Act reasonably, in good faith and in the organization's best interest.Duty of Loyalty: Place the interest of the organization before your own.Duty of Obedience: Act within the scope of applicable bylaws.Considering Accepting a Directorship? Also Consider Your Liability . . . In addition to basic duties, a director or officer may be held liable for:Failure to act as stated under a statute. For example, if a statute requires directors to file a report or maintain certain records, and these reports or records are not maintained, the director may be liable for an offence under that statute.Non-compliance of the organization with a statute. For example, directors may be liable for financial losses, wrongful dismissal, employee discrimination or failure to remediate environmental damage. Be aware that directors can be held personally liable and that:Ignorance is not a defence.Resignation is not necessarily a defence.Company indemnity may not be enough.Consult a lawyer for more information on directors' and officers' legal liability. For a comprehensive review of legal liability for directors and officers of not-for-profits, review Industry Canada's Primer for Directors of Not-for-Profit Corporations. Managing Liability Risk Organizations with paid or volunteer boards should be aware that directors and officers have very specific duties and obligations. Directors and officers should be given all of the appropriate information that is required to perform their duties effectively. Whether your organization is creating its first board or has a long-established board, or whether you're considering becoming member of a board, learn about 11 risk management opportunities for directors and officers. Emergency Preparedness for Business Life can throw its share of curveballs so it’s important to be ready for anything. And yet, a large number of small businesses don’t have an emergency preparedness plan in place. This guide is intended to help you safeguard your business by preparing for the unexpected.Commercial Insurance for Small Business – Q&AQuestion to ask your insurance representative.Business Insurance and YouManaging risk is an essential part of every business, large or small. Theft, fire, vandalism, riots: A host of perils could come your way and you need to be ready for them. Let’s look at some of the basic steps you can take. Related ServicesDirectors and Officers Liability Risk Management Directors and officers must ensure they have the appropriate information required to perform their duties effectively. Whether your board of directors is new, established, confronting a scandal, or establishing or amending its by-laws , you can help to manage organizational risk. Directors and Officers Liability - Claims ManagementIn the event of a loss, the reporting requirements for directors’ and officers’ insurance policies must be adhered to. When a claimable event happens or may potentially occur, contact your insurance representative immediately. Useful LinksInsurance VendorsInsurance is a significant financial investment so it’s worthwhile to learn about your buying options. Cost ControlThere are many ways you can control insurance costs and lower your premium. Shop around and ask your insurance representative for more information about the options below and other savings opportunities.