Errors & Omissions (E&O) Insurance

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

PS Network

Market Better
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Spark Insight
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Grasp Risk
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Tame Risk
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