Professional Liability Insurance will protect your business from accusations of errors, omissions, or negligence committed within the scope of your professional activities. It’ll cover your damages—legal expenses, administrative costs, and court settlements—even if the claims made against you are groundless.

Why do we recommend it?

Depending on your field and where you practice, Professional Liability Insurance may or may not be mandated by a regulatory body. But even if it’s not a requirement, there are countless reasons why Professional Liability Insurance is critical for all Financial Services firms.

Whether you evaluate investments, manage payroll, or deal with borrowers, your advice is directly tied to your client’s bottom line. And when people’s finances are in question, tensions can run high. Even if you’ve worked to the best of your knowledge and ability—even if you’ve done nothing wrong—clients can sue as long as they believe there’s been a loss, error, or oversight. The bottom line? Any business or professional that provides professional services or advice to clients for a fee is at risk of legal action and should have Professional Liability Insurance.

Directors & Officers Insurance protects your business leaders and board members if they’re personally sued for any actual or alleged wrongful acts in managing the company.

Highlights Include:

• Side A Coverage: Protects Directors and Officers in the event of a claim where the company cannot or will not cover their personal liability. Specifically, Side A will extend coverage to the Director/Officer for any financial exposure related to wrongful acts allegedly committed before or during the policy period, protecting their personal assets in the process. In the event a Director/Officer is found liable, Side A Coverage would pay any legal costs or settlements up to the policy limit and included within the policy terms.
• Side B Coverage: Protects the organization in the event of a claim where it DOES decide to defend the Directors and Officers. If a Director and/or Officer is found liable, and the organization covers their legal fees/settlements, the organization can claim reimbursement under Side B of their Directors & Officers Policy.
• Side C Coverage: Protects the entity itself for any claims related to traded securities. For example, if shareholders filed a lawsuit related to securities traded on the stock market, Side C would extend coverage for any legal costs incurred by the company in the process of defending itself.

Why do we recommend it?

As the leader of a Financial Services firm, you’re under a harsh spotlight from clients, shareholders, creditors, regulators, and a variety of other key stakeholders. With rising calls for corporate accountability, even a single mistake or lapse in judgment could lead to a lawsuit for poor governance, misallocation of funds, regulatory non-compliance, and more.

And unfortunately, the consequences for Directors and Officers facing allegations of mismanagement are severe. Both your corporate and personal assets can be at stake—and your company won’t always be able to reimburse your losses. With a comprehensive D&O policy, you can protect yourself and any other business owners, shareholders, investors, and employees from exposure.

Cyber Insurance protects your business and offsets your losses in the event of a breach, like if your company’s information is stolen or exposed by a hacker, or accidentally released by an employee. This policy typically includes the following coverages:

• Legal coaching on how to handle the breach with privacy regulators;
• Funds for credit monitoring and client notification costs;
• Funds for court-awarded damages and legal fees in case of a civil suit; and
• Public relations services to manage any reputational fallout from the breach.

Highlights Include:

• Coverage for First Party Liability Expenses–when a breach happens at your own business. Your policy will provide coverage for expenses associated with: Event Support Services, Crisis Management Expenses, Network Business Interruption, Digital Asset Restoration, Network Extortion/Ransomware, Cyber Crime, Computer Replacement, and Business Interruption.
• Coverage for Third Party Expenses in the event that you’re sued by a third party whose data was compromised in the breach. This includes costs associated with Privacy Regulation Penalties, Multimedia Liability, Payment Card Industry Fines and Penalties, and more.
  

Why do we recommend it?

Financial Services firms are among the top targets for cybercriminals. Why? You either have the type of personal information that cybercriminals crave, or you’re a gateway to it. A breach is all but inevitable; it’s just a matter of how soon it happens. Without proper security, you risk losing permanent access to mission-critical data. Plus, if you’re found negligent in the event of a breach, Canadian Privacy Regulators could fine you up to $100,000 per violation. Then there are indirect costs, like client notification, investigation, business interruption, and legal fees. In fact, the average cost per lost or stolen record in your industry is $520. If you have even 100 clients, that means you’ll be out a minimum of $52,000 in breach expenses.

Even worse? Diminished goodwill and reputational harm from the breach might even do more harm than remediation costs, especially if you don’t take swift action or notify breach victims right away. Once you’ve lost that trust, it won’t be easy to regain, or attract new clients, employees, or even investors.

That’s where Cyber Insurance comes in. With a comprehensive policy, you can protect your company from financial loss and get ahead of a breach without losing business momentum or taking a massive reputational hit. Learn more by visiting our Cyber Toolkit below.

Mortgage Impairment Insurance provides protection for mortgage lenders (i.e. a private lender, investor, mortgagee) if a property is uninsured and sustains physical loss or damage. If a lender believed a property was insured at the time of the loss, but later found out that there was either no valid policy in place or that the policy did not provide sufficient coverage, Mortgage Impairment Insurance would protect their mortgage interests and offset any financial impact.

Highlights include:

• Protects the entire mortgage portfolio managed by the lender or mortgage administrator;
• Protects the private lender’s mortgage interest against physical loss or damage from uninsured perils (i.e. flood, fire, sewer back-up, vandalism);
• Covers commercial and residential properties across Canada, including both vacant and occupied properties;
• Primary Property Insurance prior and subsequent to the title passing to the lender for properties that do not have an existing policy in place, inadequate insurance, or no evidence of insurance from the mortgagor;
• Optional Premises Liability Coverage for repossessed (e.g. Power of Sale or Foreclosure) and high-risk properties, such as homes under construction, vacant properties, boarding houses, and multi-family dwellings.

Why do we recommend it?

There are numerous scenarios where Mortgage Impairment Insurance is crucial for lenders. For example, when a property is subject to a Power of Sale, the lender assumes a crucial role as the mortgagee in possession. With this responsibility comes the potential for liability related to the property. If there was a break-in at a vacant property or an injury during a real estate showing, the affected party may look to the mortgagee in possession for compensation. It is important for the lender to have the proper protections in place to safeguard against such scenarios.

In the past, only the largest banks and trust companies in Canada could access this coverage at affordable rates. Now, mortgage administrators, individual private lenders, mortgage funds, and mortgage investment corporations can all purchase through PROLINK at exclusive rates to protect their assets.

An additional benefit? The cost of adding a property to your Mortgage Impairment policy for primary coverage is generally more cost-effective than taking out a standalone Property Insurance policy. As a result, you might be able to offset policy costs, or even use the policy as a small profit centre by charging back on mortgages when the primary coverage is required.

Obtaining this policy through PROLINK will also reduce the time you spend administering home and condo insurance for individual properties. Once purchased, you can simply provide us with a quarterly list of properties that require primary insurance instead of applying for coverage on a case-by-case basis.

A Financial Institution Bond protects your business and clients against losses caused by the dishonest or fraudulent acts of an employee, such as embezzlement, forgery, misappropriation of funds, and more. In addition to consumer and balance sheet protection, this type of bond acts as a financial guarantee to regulators for the assets and investments held by a financial institution.

PROLINK’s Financial Institution Bond program also covers Social Engineering Fraud, in which hackers manipulate employees into voluntarily disclosing private information. Hackers typically use email, text, or other forms of communication to impersonate high-ranking executives or other key personnel and demand immediate action, such as confirming financial details, providing payment instructions, or even transferring funds. If employees aren’t aware, they could inadvertently leak data or compromise your entire network, leading to regulatory compliance violations, as well as major financial, legal, and reputational harm.

Social Engineering Fraud is generally included under most Cyber Insurance policies; however, depending on your current cybersecurity controls and the industries you serve, insurers may opt to decline or exclude this coverage for those working in the financial space given the high likelihood or attack.

Highlights include:

• Complies with all requirements under National Instruments 31-103 for firms registered as either Investment Fund Managers, Restricted Portfolio Managers, or Exempt Market Dealers;
• Complies with all relevant Provincial Securities Commissions (OSC, ASC, BCSC, etc.) and Regulators (i.e. SRO, the new merged entity that includes IIROC and MFDA);
• Can endorse multiple entities under one bond;
• Simple application process: members can benefit from a quick turnaround from an insurance broker who understands your business.

Why do we recommend it?

Depending on the professional services you provide, you might be required to carry a minimum Financial Institution Bond by various regulatory bodies. Our program can help you secure the appropriate coverage for every regulatory jurisdiction where you’re domiciled and ensure compliance with any other agencies that require you to carry a bond, like the Self-Regulatory Organization of Canada (SRO), the new merged entity that includes the Investment Industry Regulatory Organization of Canada (IIROC) and Mutual Fund Dealers Association (MFDA).

But even if you’re not required to have it, a Financial Institution Bond is still critical to protect against insider actions, both intentional and unintentional. Most business owners tend to focus on external threats, but the reality is that internal fraudsters, especially trusted employees, can often go unnoticed since they know exactly where sensitive information is located, how much it’s worth, and how to bypass security measures. The bottom line? Even the most well-managed companies are susceptible to workplace fraud and any financial services firm that has employees handling confidential information should consider this coverage as a standard part of their risk management strategy.

Additionally, with cybercrime at an all-time high, a Financial Institution Bond can help you mitigate the impacts of human error. Social engineering scams and phishing emails have become incredibly sophisticated and convincing; even your most vigilant employees could accidentally divulge their login credentials or other confidential data, especially if they’re distracted or working quickly. Social Engineering Fraud coverage can supplement your existing Cyber Insurance to protect you more comprehensively, offset financial loss, and ensure data loss doesn’t destroy your reputation.

Commercial General Liability Insurance (CGL) will protect your firm from third-party claims of bodily injury, property damage, and reputational harm caused by your professional activities or business operations.

Why do we recommend it?

CGL will protect you from common risks that all businesses face regardless of size, trade, or industry. Whether your firm is large or small, online or on the ground, you could be liable if any kind of damage or injury to a client, vendor, supplier, or other third-party is traced back to you or staff. You’re particularly vulnerable if you or your employees:

• Own, rent, or lease a commercial space that’s open to the public;
  
• Have a home-based business where clients visit you;
  
• Visit your client’s workspace or home, or conduct business anywhere else offsite; and
  
• Advertise or create marketing materials for your products, or services.
  

Commercial Property Insurance protects your commercial property from damage or loss and will cover the costs of repairs or replacement for contents, equipment, and furnishings.

Why do we recommend it?

Whether you own, lease, or rent commercial space or work from home, your general liability or homeowner’s policies won’t reimburse you for any damage to your office contents. And without Property Insurance, the impact of repair and replacement costs following a break-in, fire, or other disaster could be financially devastating, especially if you lose any valuable equipment, files, or key documents that are critical to your operations.

Employment Practices Liability Insurance (EPL) protects your business from claims made against you by employees, such as wrongful termination, discrimination, harassment, and more.

Why do we recommend it?

As a business leader, you know how aggressive clients can be—but employees can be equally as unpredictable. No matter how much you trust your team, even if you hand picked them yourself, you might just be one close call away from an allegation that could affect your reputation as a fair employer. And these days, it’s not hard to get the Ministry of Labour involved and suddenly, you’re out thousands of dollars in legal fees and lost business. With an EPL policy, you’ll be protected against any employee allegations that may arise throughout the course of work (subject to the terms of your policy).

Group Benefits Insurance offers fully customizable Health, Dental and Drug plans for you and your employees at competitive rates.

Why do we recommend it?

The success of any organization relies on the well-being of its people. When employees are healthy—when they feel supported by workforce leaders—businesses are resilient in the face of an uncertain future. That’s why it’s key to protect your employees’ physical, mental, and financial health with a strong benefits package. Our Protect & Perfect risk management approach to group benefits can align your firm with a comprehensive program that reflects your staff’s needs, business challenges, and financial goals.