Independent Financial Brokers of Canada | Individual E&O - Independent Financial Brokers of Canada

Premium Information for Life Brokers and Mutual Fund Reps

$1 Million Per Claim / $2 Million Aggregate – $795
$2 Million Per Claim / $2 Million Aggregate – $980
$3 Million Per Claim / $3 Million Aggregate – $1,305
$4 Million Per Claim / $4 Million Aggregate – $1,850
$5 Million Per Claim / $5 Million Aggregate – $2,185

The coverage year for the IFB E&O program runs from July 1, 2023 – July 1, 2024. Premiums will be pro-rated based on the inception date of coverage. Premiums do not include applicable provincial tax, as follows:

ON – add 8% tax; QC – add 9% tax; MB – add 8%; NL – add 15%; SK – add 6%.

Premiums include all mandatory coverages required by regulation.

Lower Premiums

The IFB E&O plan is ‘No Fee’ E&O – no broker fees, no ‘fund’ fees. When comparing rates, be sure to check if your current provider tacks on these extra charges.

Flexible Limits

Limits of $1 million to $5 million, and all levels in between.

Simplified Premiums

No complicated rate charts and level premiums across the country for life insurance brokers and mutual fund advisors.

Credit cards accepted

Pay your premium with Visa or MasterCard.

Great optional extras

Coverage for Exempt Market Dealer Reps & low cost Privacy and Network Security coverage. Upgrade with IFB ELITE Endorsement.

Reliable coverage

Coverage arranged with AXIS Reinsurance Company.

Extended cover

NEW – Lifetime Extended Reporting Period (ERP) available.

Deductible Waiver

Waiver of deductible in the event of a Life, A&S, or Mutual Fund claim if you have been insured under the IFB members’ plan and have been claims free for at least 3 years.

Newly licensed advisors get 50% off

We want to give a helping hand to people who are just starting out in the industry. IFB offers up to 50% off your first E&O premium if you’re a new financial broker. To qualify for this discount, you must be a newly licensed Life or Mutual Fund representative; never held a license before, and never held E&O coverage before.

Accidental Death and Dismemberment Insurance

Accident Death and Dismemberment insurance will automatically be included in your new or renewing plan. This coverage will protect you during YOUR working hours – so, in other words, any time you are travelling to or from a client meeting, whether it’s during regular business hours or an evening or weekend!

E&O insurance for Certified Financial Planners®

E&O insurance is now available for unlicensed fee-for-service financial planners who hold a valid CFP® designation.

Premiums are as follows:

$1 Million PerClaim / $2 Million Aggregate – $605

$2 Million Per Claim / $2 Million Aggregate – $1,025

Premiums do not include applicable provincial tax, as follows:

ON – add 8% tax; QC – add 9% tax; MB – add 8%; NL – add 15%; SK – add 6%.

IFB ELITE Endorsement

The endorsement provides you with the option to upgrade your E&O insurance coverage for a $250 flat premium (excluding any applicable taxes).

Coverage Details:

Enhancement A: Increased Regulatory Investigation limit to $50,000 (currently a $25,000 limit).
Enhancement B: Unlimited Defense Costs on covered claims (currently included within limit of insurance carried).
Enhancement C: Accidental Death and Dismemberment Insurance with 24/7 Personal and Business coverage (currently Business coverage only).

Optional Privacy and Network Security Breach Response Insurance

Data security is a paramount exposure in the financial services industry. A breach of data can be ruinous in terms of costs to comply with notification requirements, potential liability claims, and damage to your business reputation. The optional coverage available to IFB members addresses these evolving exposures: it protects your business from claims and other exposures resulting from a breach of data security.

Limit/Premium information is as follows:

Limit: $100,000

Deductible: $1,000

Flat rate Premium: $375

For more information on our Privacy and Network Security Breach Response Insurance, click here.

Optional E&O Insurance Coverage for Exempt Market Dealer Representatives (EMDR):

IFB plan members can now purchase coverage for their activities as a registered Exempt Market Dealer Rep, provided these activities are conducted through a Registered Exempt Market Dealer. Coverage is issued as an endorsement on your certificate of insurance.

This limit is included in the overall coverage limit selected, and is not in addition to the overall limit. A $25,000 deductible applies for EMDR coverage.

$250,000 per claim/$250,000 aggregate limit
Deductible: $25,000
Premium: $695 (plus tax, where applicable)

Coverage for Referrals

Subject to the terms of the policy, your referral business is covered provided you disclose in writing to your clients any compensation arrangement that you receive for the referral.

Your Employees are Covered

Subject to the terms of the policy, your employees are covered including mutual fund licensed assistants at no additional cost.

If You’re Leaving the Business

Extended Reporting Period (ERP or tail coverage) is available for those retiring or leaving the business.

For additional information on this coverage, please contact Michelle Cartwright of The Magnes Group Inc. at 1-800-650-3435, extension 366 or via email at mcartwright@magnesgroup.com.

Does the IFB E&O program offer coverage for activities relating to referrals?

You bet! The IFB plan offers coverage for referrals, including referrals that are done for a fee provided that you disclose that fee to your client.

Does the IFB E&O program reimburse my legal costs if I’m required to appear before regulatory bodies?

Yes, it does! The IFB program provides for $25,000 in legal costs for each and every plan member should he/she be called to appear before a regulatory body. There’s no plan cap on that coverage, and it’s worth checking with your current insurer to see if they a) provide this coverage and b) put a cap on the maximum they’ll payout. The IFB plan does provide it, and we don’t cap it.

Does the IFB E&O program offer up to $5 million liability limits?

Yes, it does! We have the following limits available:

$1 million/$2 million aggregate
$2 million/$2 million aggregate
$3 million/$3 million aggregate
$4 million/$4 million aggregate
$5 million/$5 million aggregate

Plus, the IFB program is designed to cover any requirements mandated by a provincial insurance regulator, even if a regulatory requirement is introduced mid-term.

Does it have a “plan aggregate” that caps total claims for all insured participants as a group?

The IFB program has no plan aggregate – this is one of the key benefits of our program. Some of the other industry programs do contain a cap on total claims paid out for all insured participants in a group.

This could be quite alarming to a financial advisor in that even if you do carry insurance and even if the policy does cover the claim you may not be afforded coverage if the plan has already been exhausted from claims by other participants in the program.

Will your E&O insurance provider be around when times get tough?

AXIS Reinsurance Co., the underwriter of the IFB E&O program, has an S&P rating of A+, and is rated A (Excellent) by A.M Best.

Who created, develops, and manages the IFB E&O Insurance program?

There are a lot of people ‘behind the scenes’ of the IFB E&O plan, and we’re all justifiably proud of the product we’ve created. It’s designed to be the most broadly worded, most competitively priced, and best managed E&O program available to independent brokers. The current plan is the result of many years of hard work by IFB members and staff, and has been elevated in the past few years by the addition of a high caliber, service oriented broker, The Magnes Group. And we’ve taken it to a whole new level with the addition of AXIS Reinsurance Co. as the underwriter of the plan.

Together, we’ve created an E&O program that’s unstoppable!

What should an IFB plan member do in the event of a claim or ‘incident’?

We always encourage our members to keep the lines of communication open. If something makes you stop and wonder whether you ought to call the broker, then by all means: call the broker. And the good news is: our broker will take your call! You will find Roberta and the entire team at Magnes to be open, helpful and knowledgeable – and that’s a refreshing change in E&O brokers!

Does IFB offer educational seminars relating to claims prevention and other aspects of E&O insurance?

Yes, we do! At virtually every Summit or Event that we hold, our broker is on hand to give seminars on all aspects of E&O insurance, including such important topics as claims prevention, and important features of your E&O coverage. And we even do house calls! If you have a group of advisors who would like an E&O presentation in a smaller setting, we’re happy to arrange to come to your office and do so. If you’d like more information, just send an email to Nancy Allan (allan@ifbc.ca) indicating your location and the number of brokers who are interested in attending.

Does IFB and its broker meet with advisors face to-face and share knowledge?

Not only does our broker make educational presentations at Summits and Events – she sticks around to talk to members, too! Just stop by the IFB booth and ask for Roberta. She’ll be happy to chat with you one-on-one.

Errors & Omissions Insurance Exclusive to IFB Members