Advisors are required to carry insurance for Errors & Omissions (E&O) claims. This insurance protects consumers, advisors and insurers from issues such as

• mishandling of funds
• improper disclosure
• mistakes in professional judgment
• failing to follow the steps of putting the policy into effect

Coverage Amounts

Ontario requires advisors to have

• $1 million of coverage for errors and omissions
• extended coverage for fraud

Best Practices

Advisors can protect themselves against claims by

• paying attention to detail at the time of sale and delivery of the policy
• documenting all contacts with you (e.g., in person, by phone, via email)

Tip: Since memories can deceive, consider keeping your own records too.

Time Of Purchase

You can expect your advisor to

• not oversell the policy benefits
• point out policy exclusions
• explain when coverage begins
• explain the operation of the Temporary Insurance Agreement
• insure your policy application is
  • filled out completely and accurately
    • ensure that you acknowledge and initial any changes
  • reviewed with you

Delivery of Policy

When delivery your policy contract, you can expect your advisor to

• carefully explain and review the coverage
• point out any premium surcharges (e.g., for poor health or hazardous activities)
• explain any probationary periods and exclusions for pre-existing conditions
• explain the 10-day Recission Period