Brokerage Licences

RIBO licenses insurance brokerages in Ontario, enforcing strict compliance standards to protect client funds and consumer interests. We ensure transparency, fairness, and accountability in all transactions, fostering a marketplace where clients can trust brokers to act with integrity and provide unbiased advice. Through ongoing monitoring and audits, we work to prevent fraud and unethical practices, helping consumers make informed insurance decisions.

Active Firm Licensee

Any business (sole proprietorship, partnership or corporation including Managing General Agents seeking voluntary registration) must register as an active firm licensee before it is eligible to sell or distribute general insurance in Ontario. This registration must be completed and approved before conducting any insurance business.

Principal Broker at the Firm

The firm must appoint a Level 3 unrestricted licensed individual as Principal Broker to be responsible for managing the firm, overseeing employees, and ensuring the business follows the Registered Insurance Brokers Act, regulations and by-laws.

Other Requirements

Two Letters of Intent

To meet the requirements of the Compulsory Automobile Insurance Act, and in order to be eligible to deal in auto insurance in Ontario, the firm must be assigned a Facility Servicing Carrier by the Facility Association. An application to be appointed to a Facility Servicing Carrier is available online.

Firm applicants must also submit two letters of intent form insurers with their registration application. Monoline or single market exemptions for brokerages are available on a case by case basis subject to review and approval by the RIBO Qualification & Registration Committee. For more information, email licensing@ribo.com.

Ontario Business Address

The firm must have an Ontario-based place of business and/or an attended Ontario mailing address, regardless of the primary business location. (P.O. boxes do not meet this requirement.)

Office Space

To ensure confidentiality of client information, a brokerage office must be separate and distinct from other businesses. The office must be clearly labeled to avoid confusion about its independence from other businesses sharing the same location. Consult the Principal Broker Handbook for more information on how to safeguard client information or request an exemption if the firm will be sharing space with other businesses.

Trust Account

All firms must have a trust account to obtain and maintain their RIBO registration. The legal registered name of the business and the words ‘trust account’ must appear on the trust account and any documents related to it. (e.g. cheques, direct deposit forms)

Mandatory Insurance Coverage

All firms must have the following insurance policies in place with the RIBO Endorsement attached to both policies:

  • Errors & Omissions Policy with the following minimum limits: $3 million per claim and $6 million aggregate)
  • Fidelity Bond with a minimum $100,000 limit.

Learn more about Errors and Omissions and Fidelity Bond.

Trade Names

It is a requirement under the Business Names Act and a RIBO regulatory requirement that firms must register any trade names with Service Ontario and RIBO prior to holding itself out under the trade name. Trade names must appear as additional named insureds on the mandatory insurance policies.

Only Business Requirements

According to Regulation 991, Sections 6 and 7, the only business a firm can operate is that of an insurance brokerage, or a combination of insurance brokerage and life insurance services.

If a firm wants to engage in other types of business, it must apply for a Secondary Business Exemption from the Qualification & Registration Committee.

The Principal Broker must submit a letter explaining the other business, and the exemption must be approved before starting any additional activities.

Firms wishing to sell non-insurance financial services must also complete and submit a Financial Products Application – Firms.

Firm Application Checklist and Form

Consult our Firm Application Checklist to ensure you understand what information and documents you will need to include before completing and submitting the Firm Application Form.

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