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 $695!

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 – $695
$2 Million – $795
$3 Million – $945
$4 Million – $1,285
$5 Million – $1,495

The coverage year for the IFB E&O program runs from July 1, 2017 – July 1, 2018. Premiums do not include premium tax, where applicable. 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.

NEW! DAS Legal Expense Coverage

DAS Legal Expense Coverage for you and your family will automatically be included in your renewal. You’ll receive coverage for employment disputes, contract disputes, tax protection and more, and you’ll have unlimited access to a 24/7 Legal Helpline – exclusively for IFB members! If you’ve ever had to call a lawyer, you’ll know that this coverage is worth hundreds of dollars! For more information on DAS Legal Expense Coverage, click here.

NEW! 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!

NEW! 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. This coverage also includes DAS Legal Expense coverage and AD&D! Premiums are $525 for a $1 million limit, and $875 for a $2 million limit.

NEW! IFB ELITE Endorsement

Upgrade your E&O coverage for a $160 flat premium.

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. This 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. This breach insurance includes:

  • Network Security and Privacy Liability coverage – $100,000 per claim/aggregate
  • Network Security Event Crisis Management Expense – $50,000 per claim/aggregate
  • Regulatory Action Coverage – $50,000 per claim/aggregate
  • Computer System Extortion Expense and Loss Coverage – $50,000 per claim/aggregate

Deductible: $5,000 per claim, where applicable.

Flat rate Premium: $50 plus tax, if applicable.

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
  • Premium July 1, 2017 – July 1, 2018 — $500.00 (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 The Magnes Group at 1-800-650-3435.

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.

If You’re Leaving the Business

Extended reporting (ERP or tail cover) is available for those retiring or leaving the business. The cost to purchase ERP is:

Duration of Extension of Coverage: % of Expiring Policy Premium:
One Year 75%
Two Years 100%
Three Years 125%
Four Years 150%
Five Years 165%
Six Years 180%
Seven Years 235%
Eight Years 285%
Nine Years 335%
Ten Years 385%
Lifetime 500%

To apply for Extended Reporting cover, call 905-279-2727 or toll-free 1-888-654-3333.


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