When most condo owners hear “D&O insurance,” they assume it’s there to protect the board – and in part, it is. But here’s what many don’t realize:
Every time this policy is triggered, we pay for it – directly or indirectly.
Premiums increase. Our claims history worsens. And when the policy is misused, the financial fallout lands squarely on our shoulders.
1. What D&O Insurance Is Meant to Cover 🛡️
Directors & Officers (D&O) insurance exists to protect board members when they’re sued for decisions made in good faith, within their role as directors.
In other words:
- If a director acts on behalf of the corporation,
- And they’re sued for that decision,
- The policy can cover defence costs and damages.
It’s not a personal protection plan for former directors or owners acting in their personal capacity.
2. Why This Matters to Every Owner đź’¸
Every D&O claim impacts us financially:
- Premiums rise with every payout.
- Our claims history follows us, making future insurance more expensive.
- And when coverage is misused, we subsidize disputes we aren’t even part of.
This is why transparency matters – and why owners deserve answers when the policy is used in questionable circumstances.
3. The Problem With This Case ⚠️
Here’s where things don’t add up:
- The individual who obtained coverage is a former director.
- At the time of his actions, he wasn’t a director.
- His actions were taken as an owner, not on behalf of the corporation.
Under these circumstances, D&O coverage shouldn’t apply.
Even more troubling is the insured-vs-insured exclusion, which states:
If one insured (e.g., a current or former director) sues another insured, coverage is excluded. (this is a case of insured vs. insured)
This clause exists in almost every D&O policy – to prevent conflicts of interest and keep costs under control.
And yet, somehow, coverage was extended. How? Who approved it? And why?
4. Refused Transparency = Rising Costs 🧩
To understand why coverage was extended, I requested access to the corporation’s correspondence with the insurer – a reasonable request under the Condominium Act.
In their typical childish and defensive fashion, the board refused.
I’ve now been forced to file an application with the Condominium Authority Tribunal (CAT) to enforce my right to see these records.
For me, representing myself, this will cost no more than $200.
For the corporation? They’ll spend another $20,000 of your money fighting me instead of just providing transparency.
And here’s the brutal truth:
- The corporation is not even a party to this dispute.
- The board is not protecting our interests by defending this.
- And let’s be honest – this board couldn’t represent the corporation if their lives depended on it.
If they have nothing to hide, why refuse to share the correspondence?
5. Why Owners Should Care 🏢
Maybe you trust the board. Maybe you think this doesn’t affect you. But here’s reality:
- Every inappropriate claim drives up our premiums.
- Every legal battle depletes our common funds.
- And every refusal to disclose information erodes transparency and accountability.
Final Thoughts đź’ˇ
D&O insurance exists to protect the corporation, not to shield individuals for personal disputes. Misusing the policy costs all of us through higher premiums and wasted legal expenses.
Until the board explains how and why this coverage was granted, one thing is clear:
Every dollar spent carelessly today is another dollar on your bill tomorrow.
Transparency isn’t optional. It’s our right. And I intend to fight for it.
You may not care how your money is spent – but I do. And I have both the right and the responsibility to demand answers when the board’s actions put all of us at financial risk.
Condo Tribune: Because someone has to follow the money.
