Errors and Omissions Insurance for Restricted Insurance Agents (RIAs)

Do you sell insurance-related products in your course of business? Car dealers, travel agents, freight forwarders, electronics sales — many businesses sell credit, travel and other insurance products.

MIG Insurance offers a unique RIA E&O insurance policy built specifically for this.

RIA Definition:  a person or entity that, in the course of selling or providing goods or services to its customers or clients, sells, negotiates or arranges insurance, or offers to sell, negotiate or arrange insurance, that relates to those goods or services.

What is a Restricted Insurance Agent?

Many different types of businesses — car dealers, mortgage brokers, travel agents and electronic vendors, just to name a few, sell insurance products in the course of their daily operations.  Car dealers sell products such as warranty programs and disability coverage. Travel agents sell travel insurance policies.  Basically, any business operation that sells a product that includes an insurance component is considered to be a Restricted Insurance Agent.

Since 2015, Restricted Insurance Agents (RIA’s) have been required to carry provincial licensing to sell insurance-related products by the regulatory bodies known as insurance councils in the provinces of Manitoba, Saskatchewan, and Alberta. This special class of insurance agent is required to carry provincial licensing in the province in which they operate.

Why Do RIA’s Need Errors and Omissions Insurance?

E& O Insurance Protects Your Business

This coverage is important to RIA’s because sometimes in the course of your business day, you or your employees can have something go wrong.  A simple keystroke error if left undetected can cause problems that could negatively impact your customer.   And even if you or your employees didn’t make a mistake, legal fees to defend your position can have a very negative impact on your business.  With general liability and errors and omissions insurance for RIA’s, you and your business operations will be protected from the financial loss that can happen from costly errors.

E & O Insurance is Required for your RIA Licence Application and Renewal

Similar to general insurance brokers and agents, to sell insurance or insurance-related products, you need to be licensed by your provincial regulator. The insurance councils exist to provide protection to the insurance buying public. They establish standards for licensees to uphold competency, professionalism, and integrity of the insurance industry. Since 2015, these standards have been applicable to any entity selling insurance products. A key component to compliance is to maintain an active license and a requirement to licensing is an in force errors and omissions insurance policy. At MIG Insurance, we partnered with Trisura to bring you a very specifically and uniquely designed product to provide the important coverage you need for your RIA license compliance.

Who Should Buy RIA Errors and Omissions Insurance?

Restricted Insurance Agents fall into the following categories because of their sales of incidental insurance products through the course of their business operations.

Businesses Requiring a RIA Licence

What Does RIA Errors and Omissions Insurance Cost?

The cost of an RIA Errors and Omissions policy will depend on your business operations, the province(s) you operate in, the limit of liability coverage you select and the number of employees requiring coverage. For example, if you are selling credit related insurance products as a matter of course of your business operations — such as automobile and equipment dealerships, mortgage brokers, sales finance companies and deposit lending institutions —  and you have five or less employees, you could expect to pay as little as $350 for the year. By answering just a few questions, you can purchase your coverage right now with documents delivered straight to your inbox.  Get started on an easy quote right now. 

What is Included in RIA Errors and Omissions Coverage?

You take pride in the level of service you provide your customers. But sometimes mistakes can happen. When that’s the case, RIA Errors and Omissions Insurance will provide you with the financial support you need to work through making things right for your customer. What if an error is made on an application for life and disability insurance that could void the policy if a claim is made? Or a date of birth is entered incorrectly and causes problems when trying to collect on a claim? Or if your employee makes an honest mistake and tells a client information about features of a warranty program that is incorrect and a customer doesn’t have the coverage they thought they had? Even if you didn’t make a mistake but are taken to task legally, the costs can add up quickly.

Our RIA Errors and Omissions Insurance includes important financial protection for you and your employees who sell insurance-related products:

  • Errors and Omissions Coverage — the insurer will pay claims arising from damages resulting from an error or omission made in the course of selling insurance-related products. (Subject to deductible)
  • Defence and Claim Expense — the insurer will provide legal defense for any claim made against the Restricted Insurance Agent, even if the allegations being made are groundless, false or fraudulent, and will pay claims expenses.
  • Legal Assistance Hotline — your E&O policy includes access to legal advice on any aspect of your business. This advice will point you in the right direction for steps you may need to take to legally protect your business.
  • Privacy and Security Breach Services Coverage – this service can help you reduce the chances of a data breach occurring and can help you respond appropriately in the event that a breach does occur.

Steps to Licensing and Compliance for a Restricted Insurance Agent

1. Visit the website for your provincial insurance council.

Learn the license application requirements. Each provincial council is its own entity, governing compliance to provincial legislation.  If your business operates in more than one province, you will need to complete the license application process for each province.  Be sure to understand the process in each jurisdiction as it varies significantly from one province to another.  The licensing year for RIA licenses is June 1st to June 1st.

2. Research RIA Errors and Omissions Insurance.  

This coverage is designed specifically to cover for any errors and omissions you make in the course of selling insurance-related products that are associated with your main business operations.  See “Who Should Buy RIA Errors and Omissions Insurance” to understand how this coverage affects your business. The renewal cycle for this product is April 1st to April 1st, so be sure to purchase or renewal this important coverage well before the April 1st policy date. This coverage is set up on April 1st renewal date to ensure continuous coverage remains in place.

3. Identify the number of licensees for which you will require coverage

You will be required to purchase E&O insurance to cover all employees involved in the sale of products that include an insurance component.

4. Purchase or renew your coverage well before the April 1st policy effective date.

NEW APPLICANTS —  You can get a quote and buy this coverage online right now with documents delivered directly to your inbox. Self identify by the class of business you operate and the number of employees you require coverage for.  Just answer a few questions and pay by credit card.  

RENEWING CLIENTS — Your renewal code is sent to you directly from our team. You will be able to access your renewal code by entering your current policy number and postal code. You will be asked to update information for the renewal period with just a few questions.  Payment will be made by credit card on the site.  

Once completed, your payment receipt will be emailed directly to you along with:

  • Certificate of insurance — this is what will be required to accompany your RIA license application/renewal to be compliant
  • RIA Errors and Omissions Insurance coverage wordings

IMPORTANT INFORMATION  — To remain compliant for licensing, you must have continuous coverage in place.  A LAPSE OF E&O INSURANCE COVERAGE CONSTITUTES A BREACH OF LICENSING. We are not permitted to back date effective dates and no coverage exists past expiration dates of a policy.

Worldwide coverage up to a maximum of $5 million

*Trip lengths up to 182 days (different options available)

*No age restrictions unless it is a family plan then up to age 59
Worldwide coverage up to a maximum of $10 million

*Trip lengths up to 125 days (different options available)

*Available to persons up to and including age 59
Different sums available for purchase

*No age restriction for single person. Family plan up to age 59. Two people plan up to 64
Different sums available for purchase.

Includes:
• Emergency medical coverage
• Trip cancellation or interruption
• Accidental death and dismemberment
• Baggage
Must be purchased with a travel health plan.

*Maximum limit for air flight/common carrier accident is $100,000

*Maximum limit for 24-hour accident is $25,000
Includes the following:

• Emergency medical insurance
• Trip cancellation & trip interruption
• Accidental death & dismemberment
• Baggage insurance

*Only available I 59 years or under

*Pre-existing condition clause does apply
Includes the following:

• Emergency medical insurance
• Trip cancellation & trip interruption
• Accidental death & dismemberment
• Baggage insurance

*Only eligible for customers no more than 89 years old
Baggage Insurance

Rental Car Insurance (physical damage only)

Contact, adventure or extreme sports coverage

*Must be purchased with another plan
Baggage Insurance

Canadian Expatriates Plan

Inpatriates to Canada
Must be purchased with a travel health plan.

*Trip interruption can be purchased separately
Basic or Select plans available

*Only eligible for customers no more than 89 years old

*Trip interruption can be purchased separately
Must be a student and less than 40 years of age

*$2million in coverage
*Family plan available ifunder 40
None available
Must be a student and less than 69 years of age

*$2 million in coverage
*Family plan available if under 59
Must be a student and less than 60 years of age

*$2 million in coverage
*Coverage available for spouse & dependents
Worldwide coverage up at maximum of $5 million.

Policy options:
• Within Canada
•Worldwide
• Worldwide (excluding the USA)

*Pre-existing condition clause does apply

*Persons over the age of 55 must complete a medical questionnaire.

*Different deductible options are available
Worldwide coverage up at maximum of $10 million.

Policy options:
• Worldwide including USA
• Worldwide (excluding the USA)

*Only eligible for customers no more than 89 years old

*Persons over the age of 60 must complete a medical questionnaire

*Pre-existing condition clause does apply

*Different deductible options are available
Worldwide coverage up to a maximum of $5 million

*Trip length up to 32 days or less. Additional days available for purchase if under the age of 55

*Available to persons up to and including age 74
None available
None available
Airfare cancellation or Holiday cancellation packages available

*Must be purchased within 72 hours of initial deposit.
Includes the following:

• Trip cancellation before or after trip
• Missed connections
• Emergency travel health coverage
• Air flight or common carrier accident
• 24 hour accident
• Baggage and baggage delay
• Transportation of deceased

*Must be purchased within 72 hours of initial deposit.

* Trip cannot exceed 32 days in length

*Pre-existing condition clause does apply
Titled ‘Travel Accident Plan’ and must be purchased along with another plan.

*Different sums available for purchase.
Sums insured: $25,000, $100,000 or $250,000

Flight accident also available for purchase
None available
None available
Worldwide coverage up at maximum of $5 million.

*Persons over the age of 55 must complete a medical questionnaire

*Pre-existing condition clause does apply

Visitors to Canada Holiday Package
Student Medical Insurance (Inbound) – Students coming to Canada
Visitors to Canada – Emergency Medical Insurance (Single Trip)
Emergency Medical Insurance – Multi Trip Annual
TuGo
Manitoba Blue Cross
Emergency Medical Insurance – Single Trip
Trip Cancellation / Trip Interruption Insurance
All Inclusive Holiday Packages
Additional Coverages
** Exclusions apply, please refer to a broker formore information **
Accidental Death & Dismemberment Insurance
Student Medical Insurance (outbound) – Canadian Students studying abroad
Allianz Global Assistance
Different sums available for purchase

*Only eligible for customers no more than 89 years old
The mortgage lender
Pay off mortgage
With your mortgage payment
The mortgage lender
Often underwritten at time of death
Not neccessarily guaranteed
None
Usually not available
Often same rates given, regardless of other factors
Benefit decreases as mortgage paid off
If you move, the insurance ends You will have to requalify
Can only cover the mortgage
Decreasing Term
Bank
Anyone - you decide
Beneficiary decides
Invest? Pay off mortgage?
Monthly, semi-annually,annually
Get level benefit Or lower benefit overtime to match yourmortgage
Underwriting at time of application
Fully guaranteed
Premium based on gender, smoking, health, lifestyle
Preferred underwriting available
Individual policies can be customized
Deal with licensed advisors
Insurance stays with you - even if you refinance or change lenders
Take care of all insurance needs with one policy
Term or Permanent
Insurance
Broker
Payment Frequency
Other Life Insurance needs
How Insurance will be used
Beneficiary
Your best options are available through an insurance brokerage.

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