E & O Insurance Coverage: In Ontario, effective August 14, 2009 a new graduated scale of deductibles comes into effect under the E & O Insurance coverage with the provision that within a three year period the deductibles per claim for every registrant is as follows: 1st claim $2,500. – 2nd claim $5,000. – 3rd claim $7,500.

Although there has been no mention of a cap on the number of claims and/or deductibles, per registrant, one might assume that any registrant with three consecutive claims cannot rule out the possibility of the serious effect it would have on retaining their licence, and like in baseball, it may be “Three Strikes” and your out.

Another area of risk, to consider is where the "broker of record" in a large brokerage firm is named as a party to the claims of a number of "different" registrants within that firm and raises the question of whether such claims will "accrue" to the broker of record’s number of claims and the corresponding deductibles.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

Thanks for bringing this info to everyones attention.

Marty