The Quebec government, concerned over the possibility that a growing number of head offices were contemplating leaving the province over rising costs of insurance premiums for big business, is relaxing a legislative provision that compels insurers to assume defence costs of insureds over and above the limits of insurance policies.
The legislative amendment, welcomed by big business, will allow defence costs to be excluded from coverage or included in the limits of insurance only for certain ”categories of insurance contracts” and “classes of insureds.” This change may bring some insurance relief to public companies and large businesses who are struggling with rising premiums to obtain liability insurance, in particular coverage for directors and officers (D&O), in Quebec, according to insurance legal experts.