Program Overview | IFB Financial Advisor E&O Insurance Program

Magnes is pleased to be able to deliver to members of IFB one of the most competitive and market leading Advisor Errors & Omissions (E&O) Insurance programs the industry has to offer.

PREMIUM INFORMATION FOR LIFE/A&S ADVISORS AND MUTUAL FUND REPRESENTATIVES:

$1 Million Per Claim / $2 Million Aggregate – $758
$2 Million Per Claim / $2 Million Aggregate – $893
$3 Million Per Claim / $3 Million Aggregate – $1,058
$4 Million Per Claim / $4 Million Aggregate – $1,448
$5 Million Per Claim / $5 Million Aggregate – $1,728

The coverage year for the IFB E&O program runs from July 1, 2019 to July 1, 2020. 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% tax; NL – add 15% tax; SK – add 6% tax.

Premiums include all mandatory coverages required by provincial regulations.

DAS LEGAL EXPENSE COVERAGE

DAS Legal Expense Coverage for you and your family is automatically included in your new or renewing E&O plan. You’ll receive coverage for employment disputes, contract disputes, tax protection and more, and you’ll have unlimited access to a 24/7 Legal Helpline – exclusively for IFB members. If you’ve ever had to call a lawyer, you’ll know that this coverage is worth hundreds of dollars.

For additional information on this coverage, please contact Nancy Bennett of The Magnes Group Inc. at 905-845-9793 x370 or via email at nbennett@magnesgroup.com.

ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE

Accidental 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. This coverage also includes DAS Legal Expense coverage and AD&D Insurance.

Premium information is as follows:

$1 Million Per Claim / $2 Million Aggregate – $553
$2 Million Per Claim / $2 Million Aggregate – $903

Premiums do not include applicable provincial tax, as follows:
ON – add 8% tax; QC – add 9% tax; MB – add 8% tax; NL – add 15% tax; SK – add 6% tax.

IFB ELITE ENDORSEMENT

This endorsement provides you with the option to upgrade your E&O insurance coverage for a $170 flat premium (excluding any applicable tax):

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)

UP TO 50% DISCOUNT FOR NEWLY LICENSED ADVISORS

The IFB E&O program offers up to 50% off your first E&O insurance premium if you’re a newly licensed financial advisor. To qualify for this discount, you must be a newly licensed Life/A&S and/ or Mutual Fund representative, never held a license before, and never held E&O coverage before.

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.

Coverage includes:

COVERAGE DETAILS: LIMIT OF INSURANCE: DEDUCTIBLE:
Claims-Made Liability Coverages
Aggregate Claims-Made Liability Coverage $100,000 $1,000
Each Enterprise Security Event Claim $100,000 $1,000
Each Privacy Regulation Claim $100,000 $1,000
First Party Coverages
Aggregate First Party Coverage $100,000 $1,000
Crisis Management Expense $100,000 $1,000
Fraud Response Expense $100,000 $1,000
Public Relations Expense $100,000 $1,000
Forensic and Legal Expense $100,000 $1,000
Extortion Loss $100,000 $1,000
Additional Coverages
Business Interruption Coverage $10,000 Waiting Period 8 hour(s)
Data Recovery Coverage $10,000 $1,000
Media Liability Coverage $100,000 $1,000
Ransomware Loss Coverage $10,000 $1,000
Telecommunications Theft $10,000 $1,000
Social Engineering Fraud $10,000 $1,000
PREMIUM: $100 Flat

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 Representative, provided these activities are conducted through a Registered Exempt Market Dealer. Coverage is issued as an endorsement on your certificate of insurance subject to the purchase of E&O insurance as a Life/A&S Advisor.

This limit is included in the overall E&O coverage limit selected, and is not in addition to the overall limit.

Coverage details area as follows:

  • Limit: $250,000 per claim/$250,000 aggregate limit
  • Deductible: $25,000
  • Premium: $525 (plus tax, where applicable)

COVERAGE FOR YOUR CORPORATION

Magnes is also the broker for the IFB sponsored Corporate E&O program. For more information on the Corporate Coverage Solution, For additional information on this coverage, please contact Nancy Bennett of The Magnes Group Inc. at 1-800-650-3435, extension 370 or via email at nbennett@magnesgroup.com.

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.

IF YOU’RE LEAVING THE BUSINESS

Extended Reporting Period (ERP or tail cover) is available for those retiring or leaving the business. Please contact Nancy Bennett of The Magnes Group Inc. at 800-650-3435, extension 370 or via email at nbennett@magnesgroup.com.

Let’s Get Started!