Liability8 faqs Question. Insurance is a contract with an insurer to pay the costs associated with specified perils. A peril is a situation which results in loss or injury that requires compensation. For example, fire insurance covers the costs resulting from damages caused by fire.
Directors are responsible for seeing to it that the assets of the company are protected.
But the directors might not be responsible for the loss of others' property. The scope of the coverage will determine who will be paid. It is very important to be sure the scope of any insurance covers the range of things for which the insured is responsible. The Legal Studies Program gratefully acknowledges the financial assistance of the Alberta Law Foundation. LawNow also gratefully acknowledges the sponsorship of the original magazine columns by the Board Development Unit of Alberta Community Development.