Errors and omissions (E&O) insurance — also called professional liability insurance — is mandatory for all licensed real estate agents and brokerages in Canada. It protects you against claims arising from professional mistakes, missed disclosures, negligent advice, and other errors in your real estate practice. Without it, a single lawsuit could end your career and wipe out your personal finances.
E&O Insurance Premium Estimator
What E&O Insurance Covers
A standard Canadian real estate E&O policy covers claims arising from:
Negligence: Failing to exercise the standard of care expected of a professional realtor
Misrepresentation: Providing inaccurate information about a property's features, size, zoning, or condition
Missed disclosures: Failing to disclose known material defects or issues
Breach of duty: Not fulfilling your fiduciary obligations to a client
Documentation errors: Mistakes in offer preparation, condition dates, or contract terms
Fair housing violations: Claims arising from alleged discrimination
Advertising errors: Inaccurate property descriptions in marketing materials
E&O insurance typically covers both the cost of defending against a claim (legal fees) and any settlement or judgment up to the policy limit.
What E&O Insurance Does NOT Cover
Intentional fraud or criminal acts
Bodily injury or property damage (covered by general liability)
Claims arising from activities outside your licensed scope
Employment-related claims
Cyber liability (requires separate cyber insurance)
Claims from transactions before your policy inception date (unless "prior acts" coverage is included)
E&O Insurance Costs by Province
Province
How It's Provided
Typical Annual Cost
Coverage Limit
Ontario
RECO mandatory program through Encon/Aviva
$550–$1,200/yr
$1M–$3M per claim
British Columbia
BCFSA mandatory program
$700–$1,500/yr
$1M–$3M per claim
Alberta
RECA mandatory program
$600–$1,300/yr
$1M–$2M per claim
Quebec
OACIQ Fonds d'indemnisation mandatory
$750–$1,800/yr (bundled)
Program-defined
Saskatchewan
SREBA mandatory program
$500–$1,000/yr
$1M per claim
Manitoba
Manitoba Securities Commission program
$500–$1,000/yr
$1M per claim
Mandatory vs. Optional Coverage
In most Canadian provinces, E&O insurance is mandatory — you cannot maintain your real estate licence without it. The provincial regulator or association typically administers a group program that all members must participate in. However, the mandatory program may offer minimum coverage, and many active realtors purchase top-up coverage for additional protection.
Top-up coverage considerations:
Higher transaction volumes increase your exposure to claims
Luxury market agents should consider higher limits (claims on $3M+ properties can exceed $1M limits)
Team leaders and broker-owners need additional coverage for supervising other agents
Commercial real estate requires separate or enhanced coverage
E&O Is Fully Tax Deductible
Your entire E&O insurance premium is deductible as a business expense on your T2125. At a 40% marginal rate, a $1,200/year premium costs you effectively $720 after-tax. Keep your annual insurance certificate and renewal invoice — it is one of the cleanest deductions available to realtors. See our full Realtor Deductions Guide.
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Most brokerage E&O policies cover the brokerage and its registered agents for acts within the scope of their registration. However, you should confirm with your broker whether you are individually named or covered as an agent of the brokerage. In some provinces, agents must carry their own policy separately from the brokerage's coverage.
What happens to my E&O if I switch brokerages?
If your E&O coverage is through a provincial mandatory program, it typically follows your licence registration. If you have a separate personal policy, review the policy terms for transfer provisions. Most claims-made policies require you to maintain coverage for acts that occurred while you were practising, even after you leave a brokerage.
Can a client sue me personally even if I have E&O?
Yes — a client can name you personally in a lawsuit. Your E&O policy would then respond to defend you and cover any settlement or judgment up to the policy limit. This is precisely why adequate coverage limits matter — if a judgment exceeds your policy limit, you are personally responsible for the difference.
E&O insurance requirements and costs vary by province and change annually. This information is for educational purposes. Consult your provincial regulator and an insurance broker for current requirements and appropriate coverage.