Can I purchase more insurance coverage (excess insurance or insurance to cover matters that aren’t covered under the Indemnity Plan, for example)?

Excess insurance will protect you from claims that may exceed the amount of coverage available under the Indemnity Plan. Although the $1 million limit in the Indemnity Plan will protect you for the majority of claims real estate licensees face, it might not be enough to protect you and your brokerage. If a mistake you make in the provision of real estate services leads to a claim that will cost more than $1 million to defend and pay, both you and your brokerage are at risk.

We recommend that you review the amount of coverage your brokerage has in light of the risks you could face. Examples of transactions that could put you at higher risk of facing claims that will exceed $1 million are:  providing real estate services involving multiple similar properties, selling commercial or waterfront property, or working in areas where real estate prices are particularly high. If you do these types of transactions, you should consider excess coverage.

In addition to excess insurance, there are several other insurance products that brokerages should consider, including Comprehensive General Liability, cyber insurance, crime (fidelity) insurance, property insurance and Directors’ and Officers’ insurance. For more information, see “Risks and insurance for the real estate licensee” by Bill MacLeod.

Talk to one or more insurance brokers to review the various options available and the terms of coverage, including deductibles and premium rates. Speak to your own broker, or consult one of the brokers listed below*, who provide excess professional liability coverage to BC real estate brokerages and might be able to tell you about coverage for risks we don’t insure.

*This list is provided only to assist licensees interested in buying excess insurance. It is not intended to be an exhaustive list, nor in any way an endorsement of any insurance broker.