E&O insurance requirements
Overview of E&O requirements
Licensed agents require an active E&O policy meeting the terms and conditions approved by the Alberta Insurance Council.
If you’re applying as an employee of an insurer, you are covered under your employer’s E&O insurance and will not be required to enter E&O policy information during the application process.
Requirements for businesses with unrestricted certificates:
- The policy must be issued by a licensed insurer.
- The policy must contain the terms, conditions, definitions, and exclusions approved by the Minister.
- The policy must describe the period under which the claims may be made after the policy ends.
- The policy must be issued in the name of the business that holds the certificate of authority.
- The policy must provide coverage for all the employees and independent contractors who hold certificates of authority.
- Note: Even if you are the sole employee, the policy must reflect this wording.
- The minimum coverage amount must be $500,000 per claim.
- The maximum payout for all claims must be $2,000,000 per policy year.
AIC’s E&O Insurance Policy information bulletin
View AIC’s Information Bulletin – EO Insurance Policy requirements for insurance agents and adjusters to get key information, including the E&O terms, conditions, definitions, and exclusions approved by the Minister of Finance for both unrestricted and restricted licenses. The resource also outlines common causes of non-compliance with E&O and tips on how to ensure compliance.
You can also view FAQs below for more information.
FAQs about Errors & Omissions
The amount of coverage required is identified by regulation. The details are below:
35(1) The errors and omissions insurance required in respect of a business that holds a certificate of authority, other than a restricted certificate, must provide coverage of at least $500,000 per claim with a maximum policy payout for all claims of $2,000,000 in a policy year, and the policy must be issued in the name of the business and the insurance must provide coverage for the employees and independent contractors of the business who hold certificates of authority.
(2) The errors and omissions insurance required in respect of a business that holds a restricted certificate must provide coverage of at least $500,000 per claim, with a maximum policy payout for all claims in a policy year determined by multiplying $500,000 by the number of employees of the business who act or offer to act as insurance agents, to a maximum of $2,000,000.
Every agent or agency must provide proof of the master policy and the accompanying certificate of insurance.
You must provide:
- The name of your E&O carrier (insurance company covering the policy, not the brokerage who may have sold you the policy)
- Your E&O policy number
- The effective and expiry dates of your policy (your policy must be active at the time of application, it cannot be expired or effective in the future)
Check with your agency or insurance company for that policy information if you are covered under a master policy or check with your broker.
You may be trying to select the name of the brokerage that sold you the policy and not the E&O carrier. The E&O carrier must be an insurance company that is licensed in Alberta. Please check with the broker that sold you the policy.
The regulation requires the issuer of the coverage to provide 30 days advance notice if coverage is canceled or not renewed. If a replacement certificate is not received by AIC, the certificate of authority is suspended until proof of coverage is provided. If this occurs, the certificate holder will be required to complete a new application and pay a fee for reinstating the certificate.
For individuals, check out the “How to add or update the E&O policy information” tutorial.
For agencies/firms, check out the “How to add bulk E&O policy information” tutorial.