E&O Insurance

Errors & Omissions Insurance Exclusive to IFB Members

E&O Insurance

Magnes, the broker for the IFB E&O program, has once again successfully negotiated the best rates and coverage available to independent brokers – starting from just $770!

FEATURES OF THE IFB E&O Individual Broker Plan

Lower premiums

Lower premiums

The IFB E&O plan is ‘No Fee’ E&O – no broker fees, no ‘fund’ fees. When comparing rates, be sure to check if your current provider tacks on these extra charges.

Flexible limits

Flexible limits

Limits of $1 million to $5 million, and all levels in between.

Simplified premiums

Simplified premiums

No complicated rate charts and level premiums across the country for life insurance brokers and mutual fund advisors.

Credit cards accepted

Credit cards accepted

Pay your premium with Visa or MasterCard.

Great optional extras

Great optional extras

Coverage for Exempt Market Dealer Reps & low cost Privacy and Network Security coverage. Upgrade with IFB ELITE Endorsement.

Reliable coverage

Reliable coverage

Coverage arranged with AXIS Reinsurance Company.

Extended cover

Extended cover

NEW – Lifetime Extended Reporting Period (ERP) available.

Deductible waiver

Deductible waiver

Waiver of deductible in the event of a Life, A&S, or Mutual Fund claim if you have been insured under the IFB members’ plan and have been claims free for at least 3 years.

Premiums paid by personal/company cheque or premium financing are subject to a $15 processing charge.

Premium Information for Life Brokers and Mutual Fund Reps

$1 Million Per Claim / $2 Million Aggregate – $770
$2 Million Per Claim / $2 Million Aggregate – $940
$3 Million Per Claim / $3 Million Aggregate – $1,155
$4 Million Per Claim / $4 Million Aggregate – $1,635
$5 Million Per Claim / $5 Million Aggregate – $1,970

The coverage year for the IFB E&O program runs from July 1, 2021 – July 1, 2022. Premiums will be pro-rated based on the inception date of coverage. Premiums do not include applicable provincial tax, as follows:

ON – add 8% tax; QC – add 9% tax; MB – add 8%; NL – add 15%; SK – add 6%.

Premiums include all mandatory coverages required by regulation.

Accidental Death and Dismemberment Insurance

Accident Death and Dismemberment insurance will automatically be included in your new or renewing plan. This coverage will protect you during YOUR working hours – so, in other words, any time you are travelling to or from a client meeting, whether it’s during regular business hours or an evening or weekend!

E&O insurance for Certified Financial Planners®

E&O insurance is now available for unlicensed fee-for-service financial planners who hold a valid CFP® designation.

Premiums are as follows:

$1 Million PerClaim / $2 Million Aggregate – $585

$2 Million Per Claim / $2 Million Aggregate – $985

Premiums do not include applicable provincial tax, as follows:

ON – add 8% tax; QC – add 9% tax; MB – add 8%; NL – add 15%; SK – add 6%.

IFB ELITE Endorsement

The endorsement provides you with the option to upgrade your E&O insurance coverage for a $250 flat premium (excluding any applicable taxes).

Coverage Details:

  • Enhancement A: Increased Regulatory Investigation limit to $50,000 (currently a $25,000 limit).
  • Enhancement B: Unlimited Defense Costs on covered claims (currently included within limit of insurance carried).
  • Enhancement C: Accidental Death and Dismemberment Insurance with 24/7 Personal and Business coverage (currently Business coverage only).

Up to 50% Discount for New Brokers

We want to give a helping hand to people who are just starting out in the industry. IFB offers up to 50% off your first E&O premium if you’re a new financial broker. To qualify for this discount, you must be a newly licensed Life or Mutual Fund representative; never held a license before, and never held E&O coverage before.

Optional Privacy and Network Security Breach Response Insurance

Data security is a paramount exposure in the financial services industry. A breach of data can be ruinous in terms of costs to comply with notification requirements, potential liability claims, and damage to your business reputation. The optional coverage available to IFB members addresses these evolving exposures: it protects your business from claims and other exposures resulting from a breach of data security.

Limit/Premium information is as follows:

Limit: $100,000

Deductible: $1,000

Flat rate Premium: $175

For more information on our Privacy and Network Security Breach Response Insurance, click here.

Optional E&O Insurance Coverage for Exempt Market Dealer Representatives (EMDR):

IFB plan members can now purchase coverage for their activities as a registered Exempt Market Dealer Rep, provided these activities are conducted through a Registered Exempt Market Dealer. Coverage is issued as an endorsement on your certificate of insurance.

This limit is included in the overall coverage limit selected, and is not in addition to the overall limit. A $25,000 deductible applies for EMDR coverage.

  • $250,000 per claim/$250,000 aggregate limit
  • Deductible: $25,000
  • Premium: $600 (plus tax, where applicable)

Coverage for your Corporation

Magnes is also the broker for the IFB sponsored Corporate E&O program. For more information on the Corporate Coverage Solution, contact Diana Cromwell of The Magnes Group at 1-800-650-3435, extension 324 or via email at dcromwell@magnesgroup.com.

Coverage for Referrals

Subject to the terms of the policy, your referral business is covered provided you disclose in writing to your clients any compensation arrangement that you receive for the referral.

Your Employees are Covered

Subject to the terms of the policy, your employees are covered including mutual fund licensed assistants at no additional cost.

If You’re Leaving the Business

Extended Reporting Period (ERP or tail coverage) is available for those retiring or leaving the business.

For additional information on this coverage, please contact Terri-Lynn Boodhram of The Magnes Group Inc. at 1-800-650-3435, extension 364 or via email at tboodhram@magnesgroup.com.


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