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» Agent Application » E&O Rates

Summary of Coverage available for Members of CIFPs

This insurance policy may only be purchased from Marsh Canada, a licensed insurance broker.

Errors and Omissions Liability Insurance for Financial Planners whom are not Life, Accident & Sickness and/ or Mutual Fund Licensed



Employers Reinsurance 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 Advisor during the policy term, irrespective of when the error or omission took place.

It is vital to ensure that all claims or incidents which may give rise to a claim (i.e. become known by the Advisor because of a complaint — written or oral — by the client or discovery by the Advisor of the error) are reported to the insurer during the Policy Period.

Policy is written on a “Claims Made” form

Insured Services

Insured Services are those professional services that are afforded coverage under a Professional Liability policy.


Provides coverage for rendering services you provide for compensation as a licensed Certified Financial Planner.

“Certified” means having obtained a CFP designation and be in good standing order with the Financial Planners Standards Council (FPSC).


Personal Income Tax Preparation

Professional Liability 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.

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 Return.


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 the policy.


The following liability limit are available:


$1M Per Claim / $2M Annual Aggregate;

$2M Per Claim/ $2M Annual Aggregate;



The deductible varies for Professional Liability policies.

$1,000 deductible option which applies to damage only.

Defence and Settlement

Professional Liability programs can provide defence costs either within the Limit of Liability or as an extra dollar amount.

Policy 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 a claim.

Extended Claim Reporting

Any Professional 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 policy.


The extension should apply to all claims made in the future that have their origin prior to the termination date of the policy.

Policy provides the option of this Extended Reporting Period for RETIRING, DECEASED or DISABLED Agents, however there is an additional premium charge.

Options range from 1 to 10 years

Flat Premium – Last annual

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.


Defines where cover applies or where suits must be filed

Policy provides world wide coverage as long as the claim is made and suit is brought in Canada or the United States of America*.

*If you are providing professional services in the US, you must make arrangements for a separate policy in the US.  The intention of this policy is to provide coverage for Canadian professional services only.

Named Insured’s

Named Insured’s are those individuals who are afforded coverage under a Professional Liability policy.

Policy covers:

1.    The Named Insured (Policy Holder)

2.    Administrative 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 activities.



Many Professional Liability policies contain a short rate cancellation clause

Employers Reinsurance Corporation (ERC) policy contains the standard short rate cancellation provision. 



Summary of Policy Exclusions

§         Assumed liability under contract or agreement except liability applicable in the absence of same.

§         Bodily injury or property damage

·         Unauthorized access/ destruction of documents/machine or system failure/data processing

§         Dishonesty or fraud/ personal advantage

§         Economic return-market fluctuations

§         Employment related claim or suit

§         Fines, penalties, sanctions, taxes, punitive or exemplary damages

§         Insolvency or bankruptcy

§         Insurance company or mutual fund insolvency

§         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 products provider

§         Claims by an affiliate

§         Claims for services other than the named professional services

§         Collection of payments respecting insurance premiums

§         Personal injury

§         Pollution

§         Provision of unlicensed services

§         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 plan

§         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 Employers Reinsurance Corporation - ERC policy for the members of The Canadian Institute of Financial Planners E&O insurance program.


Subject to the terms, conditions and exclusions of the CIFPs Sponsored E&O Insurance policy wording with Employers Reinsurance Corporation (ERC).

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