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How
is the IFB Sponsored E&O Plan Different from Other Plans on
the Market?
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If
you're reading this, it's probably because IFB's attractive E&O
premiums caught your attention. And, if you're like most brokers,
you shop for E&O for one reason: you can't renew your license
without it. But stop and think about it for a minute: would you ever
recommend a policy or product to your clients based solely on price?
There are a lot of different providers in the E&O marketplace,
and a lot of different policies you can choose from. How can you differentiate
one from the other, and how do you decide which one is best for you?
At IFB, we have sponsored an E&O program for brokers like you
for nearly 25 years, and we have made it our business to not only
understand the marketplace, but also to understand what coverage best
suits independent financial professionals. Four years ago, we forged
a relationship with The Magnes Group, the broker for the IFB program,
that we believe has led to the creation of the broadest, best worded,
and most comprehensive coverage available for independents. Here are
some features that make our plan unique -- and make it the best investment
for your E&O dollar.
| FEATURE: |
Why
is this important? |
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'No
Fee' E&O
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IFB
offers 'No Fee' E&O Coverage. When comparing IFB premiums
to your current provider, be sure to check to see what other
fees you might be paying on top of the premium. Most other plans
charge a 'broker fee', and some even require you to contribute
to a 'fund'. IFB offers what-you-see-is-what-you-get premiums.
The only thing you ever have to add is provincial premium tax
where required (currently, Ontario and Quebec), and a nominal
processing charge ($15) if you opt to pay your premium by credit
card, cheque, or premium financing. Payment by internet or telephone
banking does not incur any additional charges. |
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'Definition
of 'Professional Services' is practice based -- not product
based
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When
a policy defines 'professional services' based on what you sell,
rather than what you do, it limits the scope of your coverage.
The IFB sponsored plan, underwritten by Axis, covers everything
you do by virtue of your life license and mutual fund registration,
and that gives you broader and more comprehensive coverage.
This is subject to the terms and conditions of the policy. |
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$1000
deductible applies across all life and mutual fund claims
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The
deductible on the IFB sponsored Axis policy is $1,000 per loss,
regardless of whether it’s a claim arising from the sale
of a life insurance product or mutual fund product. Some other
programs have 'split deductibles' for life and mutual fund claims,
depending on the product that gave rise to the claim, and charge
a higher deductible if the claim arises from a mutual fund --
sometimes as much as 5 times as high! |
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First
Dollar Defense Cost Coverage
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Compared
to other programs, Axis is unique in that it provides this important
value-added feature to your E&O insurance coverage. What
this means is that you only pay a deductible on damages that
may be assessed should a claim against you be successful --
but you do not pay a cent on the costs incurred by your insurer
to defend that claim! |
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Territory
Provision
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What
if you have a client who brings a claim against you outside
of Canada? The Axis policy provides coverage for claims made
against an insured anywhere in the world provided that the suit
is brought in Canada, the United States, or its territories
or possessions. You never have to worry about being left out
in the cold. |
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Extended
Reporting Period Coverage
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As
of the July 1, 2011 renewal of the IFB program, insurer Axis
provides from 1 year, and up to as many as 10 years, of extended
reporting coverage. Considering that an action can be brought
against you (or your estate) for many years after you discontinue
practicing, this is a vitally important feature of the Axis
plan. You must have been insured with the IFB sponsored program
for at least one year prior to applying for ERP cover. (Note:
For those retiring prior to July 1, 2011, ERP coverage for 1
- 6 years is available with our previous insurer.) |
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Liberalization
Clause
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What
happens if a provincial regulator changes your E&O requirements
mid-policy year? Under the terms of the Axis policy, the onus
is on the insurer -- not you -- to make sure that your coverage
meets all the minimum provincial requirements, and the Axis
policy automatically adjusts in order to meet those requirements.
You never have to worry about being non-compliant. |
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Great
Optional 'Add-ons' to your Coverage
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New
for the 2011-2012 coverage year, Axis is offering IFB plan
members the option to add additional coverage for the following:
- E&O
Insurance for Exempt Market Dealer Representatives - $250
for $250,000 of coverage (note: coverage limit for EMDR
E&O is included in your overall limit of liability,
not in addition to it)
- Privacy
and Network Breach Response Insurance - just $50 for an
individual broker, this coverage provides you with $100,000
of coverage for Network Security and Privacy Liability,
and $50,000 for Network Event Crisis Management, Regulatory
Action, and Computer System Extortion Expense and Loss Coverage.
It's coverage you can't afford to be without!
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