The provision is expected to encourage volunteerism on the boards of local not-for-profits
The Lawyers’ Insurance Association of Nova Scotia has secured an outside directors and officers liability insurance policy from insurer Northbridge for its practising members.
The policy was obtained with council approval. It grants NSBS members D&O coverage when they serve as an entity’s director or officer. The provision is expected to encourage lawyers to volunteer especially with local not-for-profit entities, given that many not-for-profits and small- and medium-sized organizations cannot offer insurance due to cost concerns.
To be eligible for claims under the ODL policy, lawyers must have a valid Nova Scotia practising certificate, even those otherwise exempted from maintaining coverage under LIANS’ professional liability policy. They must be serving as directors or officers of Canadian corporations, organizations, charities, trusts, or entities that are domiciled and headquartered in Canada.
The policy does not cover the entity or directors or officers who are not practising Society members.
Coverage began on November 1. Practising lawyers with board seats who are given written notice of a D&O claim or are made aware of facts or circumstances which could reasonably be expected to give rise to a claim against them for an “outside director’s wrongful act” should provide Northbridge and its broker with a written notice, including the necessary information specified in the policy.
The policy does not cover claims or known circumstances that pre-date the later of the inception date or the date an insured became a practising lawyer, LIANS said.
The ODL policy has been structured as a last resort policy that responds after other applicable insurance under the entity or lawyer. It is subject to terms and conditions that have been published on the LIANS website along with a copy of the policy wording.
LIANS confirmed that it is not the underwriter of the policy; thus, it does not contribute to claim handling or policy interpretation. The association cannot help with violations of policy terms and conditions.
A few months prior to the policy’s renewal in 2026, LIANS will survey members on whether it encouraged board participation, especially with local not-for-profits.
