Directors and Officers Liability Insurance

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					      For more information contact:
   COX MORRIS INSURANCE BROKERS                       Child Care
        5250 Roblin Boulevard
         Winnipeg, Manitoba
                 R3R 0H1                                and
         PH: 1-204-885-7582
         FAX: 1-204-896-0421
               Louise Dahle
               Dave Morris
               Nancy Morris

    2nd Floor, 2350 McPhillips Street
           Winnipeg, Manitoba
                  R2V 4J6
           PH: 1-204-586-8587
  Toll Free: 1-888-323-4676 (MB ONLY)
           FAX: 1-204-589-5613
       Email:        Directors
                                        Liability Insurance
                                        Manitoba Child Care Association
                                        2nd Floor, 2350 McPhillips Street
January 2008                            Winnipeg, Manitoba
Why Directors & Officers Insurance?

Board members may be personally sued for              as follows:                                       At common law, a director (of a Board) is
wrongful acts.                                                                                          always required to act in the best interest of
                                                      •   Libel and slander (hence the need for this    the corporation. Directors on boards of non
Your MCCA Centre General Liability insurance              coverage in Centre Liability Plan)            profit corporations have duties of honesty,
does not cover wrongful acts. Directors               •   Failure to effect and maintain adequate       loyalty, care, diligence, prudence, and skill.
& Officers Insurance provides a legal                     insurance coverage
defense and possible compensatory awards              •   Dishonest, fraudulent or criminal acts
to a claimant if a suit for a wrongful act is filed       of the insured and personal profit or         Lapse of the policy will result in
against your board members, centre or                     advantage to which they were not              total cancellation of coverage for possible
employees.                                                entitled                                      claims, which may have occurred prior to the
                                                                                                        policy cancellation. In the case the insured
Coverage                                              The following examples could be considered        (the Board, the centre and the employees)
                                                      forms of negligence, errors, omissions;           may be responsible for damages awarded, in
Directors & Officers insurance coverage agrees                                                          addition to their defense costs.
to reimburse the Board of Directors, the              Breach of Duty
centre, or the employees for amounts they             • Negligence in ensuring acceptable criteria
are legally obligated to pay for claims made             is followed in the selection/approval of       DEDUCTIBLE AND COVERAGE
against them for wrongful acts, including the            employees
costs of defending any such claim. Wrong-             • Negligence by which an employee is              The policy has a deductible of $1,000.
ful acts are usually defined as meaning any              dismissed (wrongful dismissal)                  The Limit of Liability is dependent upon the
breach of duty, neglect, error, misstatement,                                                           limit of coverage purchased.
misleading statement, omissions or other              Discrimination
wrongful acts. Such claims may be ruled by a          • Any person is barred from participating         The plan covers legal fees if you are served
court of law if proven that a person(s) suffered         in the centre due to race, age, religion, or   with a legal suit for a wrongful act. In the
damage or settled “out of court” on the                  sex                                            event, you must contact us immediately and
defendants behalf by the insurance company.                                                             we notify the Insurance Company who will
(If a centre is ever served with a legal suit,        Conspiracy: failure to disclose material          assign an adjuster to handle any possible
please contact Cox Morris Insurance Brokers           facts                                             claim and a lawyer if it develops into a
immediately so we can inform the Insurance            • A board member has family members               scenario that will go to court.
Company.)                                                employed in the centre even though
                                                         there might be better qualified people         You can obtain a premium quote and a
Like all insurance policies this policy does not      • The board may be aware of unhealthy             proposal form from Cox Morris Insurance
cover every possible risk.                               conditions in the centre and does not take     Brokers. Return it to the broker for approval,
                                                         adequate preventative steps to prevent         who will send you the Certificate of
Some of the principal exclusions contained in            possible injury to children                    Insurance.
the Directors and Officers Insurance Policy are