Independent Financial Brokers of Canada | Corporate Insurance - Independent Financial Brokers of Canada

CORPORATE E&O INSURANCE

Protect your corporation, not just yourself.

When you incorporate your practice, you create a separate legal entity, and that entity can be sued independently of you. Your individual E&O policy protects you as an advisor, but it does not automatically extend to cover your corporation when it is named alone in a claim.

IFB's Corporate E&O program fills that gap. It covers direct allegations of negligence brought against your firm, including situations where the advisor responsible is no longer covered under an individual plan. It's individually underwritten, available at any time, and designed specifically for the way independent advisors in Canada structure their practices.

Your corporation is named as the sole defendant

In this scenario, the claim is brought directly against your incorporated firm rather than against you personally. This usually occurs when the client’s legal counsel views the corporation as the contracting party

A licensed advisor let their individual E&O lapse

A suit is brought against your corporation alleging negligence on the part of a licensed advisor working under your firm who failed to maintain their own individual E&O coverage.

Allegations involve a former advisor

A claim may arise from the actions of a former advisor who is no longer part of your firm and no longer insured. In these cases, the advisor’s individual coverage will not respond, but the corporation itself may still be named in the claim.

Error by an unlicensed employee

The claim arises from the actions of an unlicensed administrative employee of your firm. Because this individual was never eligible for individual advisor coverage, their actions are not insured under any personal advisor plan.

Individually underwritten

Each policy is assessed on its own merits. Your premium reflects your firm's specific structure and risk profile.

Flexible limits & deductibles

Coverage limits and deductibles are always adjustable, so your policy can scale with your firm as it grows or changes.

Defence cost coverage

The policy responds to defend your firm when sued as a result of an individual advisor's negligence, even when the advisor is no longer with you.

Direct liability coverage

Covers allegations of negligence brought directly against the corporation. Individual advisor policies generally provide only vicarious liability to your Corporation.

Broadly-worded coverage

IFB has advocated for broad, advisor-friendly policy language for over 40 years. The corporate plan reflects the same philosophy.

Do I need corporate E&O if all my advisors carry individual E&O coverage?

Possibly, yes.
Individual plans protect the advisor personally, but your corporation can still be named as a separate defendant in a lawsuit. If your firm is sued directly, or if a claim involves someone whose individual coverage has lapsed or been cancelled, the corporation would have no coverage without its own policy. This is especially relevant for firms with multiple advisors or administrative staff.

Does the corporate plan replace individual E&O coverage for my advisors?

No.
The corporate plan covers the corporation as an entity. Advisors practising under the firm still need their own individual E&O policies to cover their personal professional liability. The two products are designed to complement each other, not replace one another.

What if a claim involves an advisor who has since left my firm?

This is exactly the type of scenario the corporate plan is designed to address. When an advisor leaves and their individual coverage ends, the firm can still face claims arising from their past activities. The IFB Corporate Plan responds to protect the corporation in these situations.

Is the corporate plan available to newly incorporated advisors?

Yes.
Because the plan is individually underwritten and available to apply for at any time, newly incorporated advisors can apply as soon as their corporation is established. There is no minimum tenure or enrolment window.

Who underwrites the IFB Corporate E&O program?

The coverage is backed by AXIS Reinsurance Company, rated A+ by S&P and A (Excellent) by A.M. Best, the same insurer supporting IFB’s Individual E&O program. This means you benefit from the same strong underwriting and continuity behind both coverages.

What should I do if my corporation is named in a claim?

Contact Willis Canada as soon as you become aware of a potential claim or receive any legal correspondence. Early reporting is important, don't wait until formal proceedings begin. The Willis team is experienced with the IFB program and can guide you through next steps quickly. Reach them at 1-877-341-0561 or ifb.insurance@wtwco.com.

Corporate E&O Insurance