Licensed Sales Agent
This insurance policy may only be purchased from Marsh Canada, a licensed insurance broker.
Errors and Omissions
Liability Insurance for Licensed Life, Accident & Sickness and Mutual Fund
Corporation - ERC, Policy
“Claims Made” Policy
Professional Liability policies are written on a claims made
basis. This means the Policy covers claims actually brought against an Agent
during the policy term, irrespective of when the error or omission took
It is vital to ensure
that all claims or incidents which may give rise to a claim (i.e. become
known by the Agent because of a complaint — written or oral — by the client
or discovery by the Agent of the error) are reported to the insurer during the Policy Period.
Policy is written on a “Claims Made” form
Insured Services are those professional services that are afforded
coverage under a Professional Liability policy.
Provides coverage for
rendering services as a “licensed Life Insurance, Accident and Sickness and/
or licensed/registered Mutual Fund Agent/ representative”.
Provides coverage as noted
above but for Licensed Marketing Assistants (LMAs) who are salaried, have no
personal sales and receive no commission income: AND must be employed by an
Insured Agent/Agency currently enrolled in the program.
LMAs must purchase their own Certificate of Insurance for a reduced
annual premium of $378 for a limit of $1M per claim and $2M annual aggregate. Only one limit is available for the LMAs.
Personal Income Tax Preparation
policies can provide coverage for Personal Tax Preparation as it generally
forms part of the professional services of the Named Insured.
Coverage may be purchased
by endorsement for an additional flat premium of $75. Subject to $1,000 deductible.
Provides coverage for the
Named Insured / Personal Income Tax Preparer, but only when using software
approved by the CRA and shall only apply to individuals filing a T1 General
Prior Acts Provision
This is a very important feature to look for when purchasing
Professional Liability coverage. NOTE: It is important to maintain continuous
E&O liability insurance.
Prior Acts covered.
Limits of Liability
Limits of Liability are chosen by the Insured at the inception of
Following liability limits are available:
$1M Per Claim/ $2M
Or $2M per Claim/ $2M
(higher Aggregate limits
where Regulations require same)
The deductible varies for
Professional Liability policies. The maximum life product deductible in some
jurisdictions is $1,000.
$1,000 deductible on each claim (Life + AH)
$2,500 deductible on each claim (Mutual Funds)
Defense and Settlement
programs can provide defense costs either within the Limit of Liability or as
an extra dollar amount.
Provides an additional
limit of liability for defence costs, up to the limit of liability purchased.
Should this limit be
exhausted, further defence expenses would reduce the amount available to pay
Extended Claim Reporting
Liability policy should have a provision to allow an insured to purchase
coverage to allow for the reporting of claims after the termination of the
The extension should
apply to all claims made in the future that have their origin prior to the
termination date of the policy.
Provides the option of
this Extended Reporting Period for RETIRING, DECEASED, or DISABLED Agents,
however there is an additional premium
charge (except with respect to Manitoba Regulations, which are met).
Options range from 1 to
Flat Premium – Last
3 years 150%
4 years 175%
5 years 200%
10 years 300%
Termination or Cancellation
- 1 year ERP is available for
most Agents @ 75% of last annual premium
For more details contact your Marsh Canada representative.
where cover applies or where suits must be filed
world wide coverage as long as the claim is made and suit is brought in Canada or the United States of America*.
you have US licenses, you must make arrangements to purchase a separate
policy in the US. The intention of this policy is to provide
coverage for Canadian professional services.
Named Insured’s are those
individuals who are afforded coverage under a Professional Liability policy.
Named Insured (Policy Holder)
assistant employees for whose acts the insured advisor is responsible.
3. Any heir,
executor, administrator, assignee or legal representative of the Insured in
the event of the Insured’s death, incapacity or bankruptcy.
4. The agency,
including a corporation or partnership under which the Insured is doing
business or is employed but only as respects such corporation’s or
partnership’s liability as it might arise directly out of the Insured’s
5. In Quebec: trainee agents
or said agents, and representative agents.
Professional Liability policies contain a short rate cancellation clause
contains the standard short rate cancellation provision.
Assumed liability under
contract or agreement except liability applicable in the absence of same.
Bodily injury or property
destruction of documents/machine or system failure/data processing
Dishonesty or fraud/ personal
Employment related claim or
Fines, penalties, sanctions,
taxes, punitive or exemplary damages
Insolvency or bankruptcy
Insurance company or mutual
Unauthorized use of trade
secretes or confidential, proprietary information or insider trading
Activities as a third party
administrator of any plan
Claims arising out of non
discloser of commission or fees
Interest rate representations
Prior knowledge situations
Claims or suits by an insurance
Claims by an affiliate
Claims for services other than
the named professional services
Collection of payments
respecting insurance premiums
Provision of unlicensed
Real estate investment
Securities except as respects
specifically covered securities (i.e. mutual funds)
Erisa, pension and related
statutes or any obligation as a fiduciary trustee with respect to any pension
Willful violation of statute
Income tax preparation and
advice except advice rendered as part of an insured professional service. Coverage can be purchased by endorsement for
an additional flat annual premium.
Subject to all the terms,
conditions and exclusions of the ERC policy for the members of The Canadian Institute of Financial Planners E&O insurance
to the terms, conditions and exclusions of the CIFPs Agents’ E&O Insurance
policy wording with Employers Reinsurance Corporation (ERC).