The Sovereign advantage

The leaders at your company are held to high standards of accountability. Given their responsibilities and high-profile role within the company, their actions (or lack of action) are in the spotlight and can be put to the test. If their decisions are challenged through wrongful act allegations or a lawsuit, you need coverage in place to protect their personal assets and the financial interests of the company, not to mention the company’s reputation. That’s where our experienced team can help. No matter what industry you’re in, we can provide simple solutions for potentially complicated risks.

Claims-made coverage

We’re renown for our claims service. Our experienced claims team handle your claim efficiently and keep you informed throughout the process. What’s more, our Management Liability contracts are "claims made" (which means that you're covered for claims that occur during your policy term, as long as they are reported as soon as practicable), not "claims made and reported" (which would only cover you for claims that occur and are reported to your insurer during your policy term).

Cost effective

We tailor coverage limits and terms to meet the needs of your business – giving you more of what you need and less of what you don’t. This ensures that not only is your policy cost effective, but that you’re getting great value.

Modular

The modular policy structure allows for choice of coverage under one comprehensive form. Four core insurance modules include: Directors & Officers Liability (D&O); Employment Practices Liability (EPL), including Third Party Coverage; Fiduciary Liability; and Crime.

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Sovereign Secure Pro: Management Liability

Management Liability protects not only directors, officers, and managers against alleged wrongful acts in their professional capacity, but also protects the company’s balance sheet. Sovereign Secure Pro offers comprehensive coverages, including:

  • Directors and Officers
  • Employment Practices Liability
  • Fiduciary
  • Crime

When it comes to risk protection, Sovereign Secure Pro is designed to address the unique, new and emerging risks to Canadian businesses. It offers comprehensive, flexible coverage, giving policyholders more of what they need and less of what they don’t. So not only is their policy comprehensive, but they’re getting great value too.

Download the product brochure to learn more.

Coverages designed to protect your business 

The leaders at your company have a responsibility to act in the organization’s best interests, to place the interests of the organization before their own and to abide by ethical standards, always within the law. If claims or lawsuits are brought against your CEO, VPs, Managers, Directors, Officers or leaders alleging that they’ve failed to uphold these responsibilities, Management Liability can help cover legal fees and damages. It protects the company’s financial well-being and your leaders from personal liability. Explore some of our Management Liability key coverages below:


Negligence

Negligence

Coverage snapshot

Mistakes aren’t always avoidable, but it’s your company’s responsibility to take reasonable care to prevent them from happening. However, if you don’t act in a reasonably prudent manner and a situation goes sideways, Negligence can provide coverage for negligent or unintentional acts of corporate directors or officers if they’re faced with allegations of a financial loss arising from mismanagement.

A director or officer can be sued for negligence in the performance of his/her duties, such as failing to file annual reports, failing to supervise, regular absence from meetings, failing to inspect the company’s books and records, etc.


Imagine a scenario where...

An employee is embezzling from the company, and the directors and officers fail to find the embezzlement and stop it. The company’s shareholders sue for damages that arose from this negligence. Directors and Officers can help cover the resulting legal costs and damages.

Crime Insurance

Crime Insurance

Coverage Snapshot

An unlawful employee’s actions could put your business at a loss. Crime insurance can provide coverages to businesses and organizations for financial losses incurred from various acts of theft, forgery, and fraudulent activities.

 

Imagine a scenario where...

Employee Theft

An employee of a property management firm steals rent paid in cash by a resident. When the loss is discovered, the Crime policy responds to compensate the property management firm.

Employee Forgery

An employee is caught forging money orders in the Insured's name. When the forgery is discovered and reported to police, the Crime policy responds to compensate the employer.

An employee breaks into their employer’s building, steals checks, and cashes forged checks before being apprehended. The employer's Crime policy pays out for this employee theft and forgery claim.


 

 

Employment Practices Liability

Employment Practices Liability

Coverage snapshot

Various provincial employment standard acts and the Canadian Labour Code and Human Rights Commissions require that companies have Employment Practices Liability protection. Employment Practices Liability helps to cover legal costs incurred to defend claims involving:

  • Discrimination
  • Wrongful termination
  • Wrongful or constructive dismissal
  • Misrepresentation, discrimination, libel, slander & defamation of character
  • Breach of employment contract
  • Sexual harassment
  • Hostile and abusive work environment
  • Unwelcome sexual advances

Imagine a scenario where...

Hostile and abusive work environment

An employee alleges that one of the senior officers created a hostile and abusive work environment, causing emotional distress. The employee decides to sue management for not abiding by appropriate workplace practices. Employment Practices Liability can help cover the resulting damages and legal costs.

Discrimination

An employee at a manufacturing facility alleges that their employer allowed religious discrimination to occur on the production floor. This includes a racial slur over the P.A. system when they were paged to take a phone call. The employee files a complaint with the Human Rights Commission. Employment Practices can help provide coverage for defense costs and damages in this case.

Fiduciary Liability

Fiduciary Liability

Coverage Snapshot

Employers bear a big responsibility in safeguarding their employees’ benefits and financial futures. Fiduciary Liability can provide coverage for directors, officers, employees and employers who are alleged to have breached their fiduciary duty or made mistakes in the management or administration of employee retirement and benefit plans.

 

Imagine a scenario where...

Faulty Advice or Counsel

An employee approaching retirement age discovers she never enrolled in the company’s pension plan. The employee sues her employer and plan trustees alleging that not only was enrollment not automatic, but the plan administrators failed to properly advise her of how to enroll.

Improper Disclosure to Plan Participants

Fiduciaries of a foundation’s pension plan failed to notify retirees of a blackout period that occurred to accommodate a switch to a new administrator. The retirees were unable to change their investment options during that period and brought suit claiming that had they been notified, they would have moved their funds prior to the blackout.

 

 

Primary or Excess Coverage

Primary or Excess Coverage

Coverage snapshot

Every business is required to obtain a certain amount of insurance coverage – either by an industry regulator, or a partner like a contractor or casualty insurer. But what is required isn’t always enough. We can help you get what you actually need based on the risks to your unique operations. Excess Coverage provides additional coverage limits for Directors and Officers insurance, across any of our approved industry classes.

 

Imagine a scenario where...

A professional services firm is requesting $5 million in coverage limits. When their broker shops their business around, none of the insurers are comfortable taking on the full risk. So, two or more insurers split the risk. One takes on a $5 million primary position, the other takes on a $5 million excess position. At Sovereign Insurance, we’re comfortable taking either position.

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