2026 Indemnity Plan brings more welcome news on annual fees!

By Chris Johnston
March 2026

As E&O staff and the Board prepare to kick off a new fiscal year, we’re happy to provide good news for all licensees, in the form of a 20+ per cent reduction in annual indemnity plan fees for the new REO426 Indemnity Plan.

The new Indemnity Plan will apply to new claims reported to E&O on or after April 1, 2026, and replaces Indemnity Plan RE0425. This latest reduction follows a 10 per cent reduction (from $350 to $315 per year) that was completed on April 1, 2023 and means that licensees will now pay $500 for their two-year licensing period.

The factors behind the news

You may be curious about how we’ve been able to reduce fees for a second time in three years, while doubling coverage limits to $2 million in 2024 and maintaining deductibles. There’s no single reason, but a combination of factors have brought E&O’s Insurance Fund to the point where we can make these changes including:

• prudent and efficient handling of claims and loss prevention – finding new and efficient ways of helping licensees to avoid claims and supporting licensees who are facing claims;
• effective risk management – prudent management of the investment fund and development of surplus management guidelines to help us make decisions on capital based on our unique risk profile and risk tolerance; and,
• changing our tax status – as a result of successfully challenging our status as a taxable entity with the Canada Revenue Agency in 2023, we’re now recognized as a non-profit organization and are no longer required to remit income taxes.

Continuing great coverage

Despite the annual fee reduction, E&O will continue to provide you with $2 million in coverage against negligent errors and omissions that may occur in the course of your activities as a real estate licensee. There are no changes to the wording in the Indemnity Plan, other than a minor housekeeping change at Declarations, s. 5 to reflect the annual fee change.

How your protection works

Every year when we issue a new Indemnity Plan, we encourage you to take a few moments to familiarize yourself with the terms of the Indemnity Plan so you’re aware of how you’re protected. We’re continuing to save resources by not mailing hard copies of the Indemnity Plan to licensees, but you can download or print a copy from the website at any time. We also encourage you to make use of the information available on the E&O website, including:

• FAQs on plan basics and coverage
• Instructions on how to report a claim
• Other types of protection such as E&O Cyber Guard

Review your other insurance needs regularly

It’s also important to periodically review your overall insurance needs. Depending on your situation, you may need excess insurance coverage that exceeds the $2 million in coverage provided by the Indemnity Plan, particularly if you’re involved in transactions that put you at higher risk. Licensees facing higher risk include those involved in activities such as:

• providing real estate services involving multiple similar properties;
• selling commercial, development or waterfront properties; and,
• working in areas where real estate prices are particularly high.

Confirm with your managing broker what kind of insurance your brokerage has and, if additional coverage is appropriate in light of the types of transactions you conduct, your brokerage can purchase additional coverage. In some cases, these excess insurance policies can also provide extra coverages, such as cyber insurance or limited protection against the legal defence costs of disciplinary proceedings.

When considering how much excess insurance to purchase, keep in mind that any legal fees incurred in defending you are paid first against the limits of coverage, which can result in there being significantly less than $2 million (the E&O coverage limit) available to pay damages in a complicated or hard-fought claim.

Comprehensive general liability (CGL) insurance is another essential for every brokerage and agent, providing coverage for bodily injury and physical property damage to third parties, including risks arising from your premises as well as any showing or listings. Ensure that the brokerage CGL policy extends coverage to independent contractors and not just brokerage employees.

For additional coverage, we recommend you consult an insurance broker who has experience in placing insurance for real estate brokerages and can advise you about your needs and options. We’ve also supplied additional information on excess insurance and a list of insurance brokers.

You may also find this recently updated article by Bill MacLeod and Rob McLeod useful – “Risk and insurance for the real estate licensee”.