By Richard Giroux and Nadia Karam, RCCAQ Insurance

In its Governance and Compliance Guidelines, the AMF notes that a good practice for registrants is to determine whether directors and officers have the necessary skills and integrity to ensure sound management. In our view, no truer words have ever been spoken!

We believe that best practices for directors and officers are essential. That means having civil liability insurance in place for directors and officers. Why? Because various unpleasant situations could put your firm and your financial assets at risk.

Here are some situations in which civil liability insurance could prove useful:

• If you are sued by the former employer of one of your staff members for unfair competition.
• If you are sued by a competitor who alleges that he or she has been defamed by you.
• If you are sued by a third party who accuses who of having made an error in a business decision.
• If you are sued for unfair dismissal.

For several years now, RCCAQ Insurance has offered an insurance program (via Intact insurance) geared towards brokerage firm directors and officers.

This coverage is subject to ongoing improvements and is increasingly useful. Due to mergers, acquisitions and other changes in the brokerage industry, organizations could find themselves in situations in which civil liability insurance is more important than ever before. That's why it's always a good idea to provide your firms and yourselves (whether you're a director or an officer) with appropriate protection from our partners of choice.

Are you interested in civil liability coverage? Please contact us today!