Errors and Omissions / Fidelity Bond

All firm licensees registered with RIBO must have Errors and Omissions (E&O) and fidelity insurance policies that meet the requirements set out in Regulation 991 made under the Registered Insurance Brokers Act, 1990 and RIBO By-Law 3.

Errors and Omissions

E&O is required to ensure that individual brokers and brokerages have financial protection against potential lawsuits resulting from mistakes or failure to meet professional duties.

These policies protect both individual licensees and brokerages from financial loss due to negligent acts, errors, or omissions in their professional services.

If legal proceedings commence against a licensee and/or a brokerage by a client or third party, about the services provided by a broker or by a brokerage, E&O insurance can cover legal costs and settlements.

Fidelity Bond / Crime Insurance

Crime insurance (also known as crime insurance or a fidelity bond) safeguards against losses resulting from fraudulent or dishonest acts including, but not limited to, employee theft and fraud. Fidelity insurance specifically addresses intentional misconduct by employees that causes financial harm to the brokerage.

Minimum Requirements

Firms must maintain, and provide RIBO with, copies of mandatory insurance policy documents which satisfy the following minimum requirements:

• E&O insurance of at least $3 million per claim, $6 million aggregate or some other form of financial guarantee
  • E&O policies are subject to additional minimum requirements.
• Fidelity Insurance of at least $100,000 per claim
• Underwritten by insurers licensed in Ontario
• A RIBO endorsement must be attached to the mandatory insurance policies
• The definition of insured should clearly extend to any past or present trade, doing business as (“dba”) or website name under which an insured is/was doing business.

Exception

Non-Active firms are not required to maintain a fidelity bond or crime insurance policy.

Upcoming Changes to E&O Insurance Requirements Effective January 1, 2027

RIBO is introducing enhancements to the mandatory E&O insurance endorsement applicable to RIBO-licensed entities. These updates are intended to strengthen consumer protection and ensure consistent coverage availability.

These requirements apply to policies renewing on or after January 1, 2027.

Dedicated Ontario Coverage

E&O policies must ensure that a minimum of:

• $3 million per claim, and
• $6 million aggregate

remains available for Ontario activities under a single policy, even if policy limits have been reduced or exhausted by claims outside Ontario.

Entity-Level Protection

Regardless of whether RIBO-licensed entities have their own E&O policy or where there are multiple RIBO-licensed entities insured under a policy, each must have access to minimum liability limits of:

• $1 million per claim, and
• $2 million aggregate.

This protection applies even where policy limits have been reduced or exhausted by claims involving other insured parties.

Coverage is assessed after any applicable excess insurance. If excess insurance is not in place, this protection applies once primary limits are exhausted.