A Corporate Coverage Solution for Small to Mid-Sized Corporations

• No more "one-size-fits-all" pricing
• An insurer that understands that all corporate entities are not the same -- and neither is the risk!
• Premiums starting from $500 with limits up to $5,000,000!

IFB is pleased to offer its members a breakthrough in errors and omissions insurance for corporations. Corporate Errors and Omissions coverage is a mandatory requirement for entities such as Managing General Agencies (MGAs), Personal Corporations, and Associate General Agencies (AGAs) in some jurisdictions. In the past, many small to mid-sized corporate entities, however, have found the cost of purchasing such coverage to be prohibitive, with price tags often in the thousands of dollars.

Aware of the need to find a solution for those caught in the gap between regulatory requirement and fiscal reality, IFB worked with its broker, The Magnes Group of Oakville, Ontario, to develop a Corporate E&O program that provides high quality coverage for insurance agencies at a price that is commensurate with the size of the corporate entity.

The Corporate Coverage Solution is underwritten by Echelon General Insurance Company, and offers premiums starting at only $500, with limits up to $5 million. The program, which is designed to work in tandem with the long-established IFB individual broker plan, is individually underwritten and no program aggregate limit applies.

Frequently Asked Questions:

Who Needs Corporate Coverage?

Personal Corporations, Associate General Agencies, Associate Managing General Agencies, Managing General Agencies, Personal Producing General Agents, and Mutual Fund Dealers should carry corporate Errors and Omissions insurance.

What's the difference between Individual E&O Insurance and the Corporate Coverage Solution?

The IFB Corporate Coverage Solution protects your company in situations where the 'defense cost' coverage on an individual advisor's policy may not be adequate to protect your company, or when your company is named alone on a claim.

Do I have to be an IFB member to obtain the Corporate Coverage Solution?

Yes -- the IFB Corporate Coverage Solution is just one example of how this Association works to meet the needs of its members. All principals of the Corporation are required to become IFB members and to maintain membership while coverage is in force. To find out about the other benefits of membership in IFB, click here.

Under what circumstances might individual E&O coverage be insufficient to protect your company?

• Only the corporate entity is named in a claim
• You have acquired a portfolio of business and the selling agent no longer carries coverage
• An agent who was working with you has left the business (or retired, or passed away) without any extended reporting E&O coverage (sometimes known as 'tail cover' or 'trailing cover')
• An allegation is made that employees of your corporate entity contributed to a claim

Is individual coverage still required if I have Corporate Coverage?

Yes -- all licensed individuals are required to maintain dedicated individual E&O coverage to be compliant with provincial regulatory requirements.

How does the IFB Corporate Coverage Solution work in tandem with the IFB Individual Broker program?

Your contracted brokers who have coverage under the IFB Individual Broker plan provide valuable protection for you. That Plan may defend you in the event your firm is sued as a result of the broker's negligence, subject to the policy terms and conditions. Your best protection is to have contracted brokers who have IFB coverage! To learn more about the Individual Broker Plan, click here.

Who underwrites the IFB Corporate Coverage Solution?

Coverage is provided through Echelon General Insurance Company, a division of EGI Financial Holdings Inc., a TSX listed company.

Is there an aggregate limit for claims under the IFB Corporate Coverage Solution?

Each individual policy issued will have its own aggregate limit. No program aggregate limit applies.

What limits of Coverage are available?

Coverage can be purchased up to $5,000,000 on a claims made basis.

What is a "Claims Made Policy"?

E&O policies are written on a "Claims Made" basis. That is, the policy in force at the time a 'claim' is made (as opposed to when the error may have been made) is the policy that would potentially respond. As a condition of an E&O policy, it is imperative that you report actual claims or situations which may give rise to a claim to the Insurer as soon as possible.