HUB Capital Inc. and HUB Financial Inc.

Our professional liability (E&O) insurance program applies to:

• HUB Financial Brokers who are licensed to sell Life, and Accident & Sickness insurance, segregated funds, as well as those who are also registered with the MFDA to sell mutual funds
• HUB Capital Representatives whose mutual fund dealership is HUB Capital Inc., and who are Licensed to sell Life, and Accident & Sickness insurance, segregated funds and are registered with the MFDA to sell mutual funds.

Also granted coverage under this policy are:

• Employees of the insured individual, including licensed and unlicensed assistants, while acting in their duties as an assistant (i.e., they do not maintain their own book of business or perform an advisor’s professional services)
• Managers or supervisors of the insured individual, but only with respect to liability arising out of the insured individual’s activities in performing professional services (i.e., the manager or supervisor must not maintain their own book of business)
• Any personal corporation, but only with respect to liability arising out of the insured individual’s activities in performing professional services
• Any firm, but only with respect to its vicarious liability incurred in the performance of professional services by an insured individual for a client
• Spouses and estates, but only for the rendering of professional services by the insured individual

Note: Any individual or entity seeking coverage under this policy based on the definition of insured individual provided above must produce a valid certificate of insurance as evidence of such coverage.

Please familiarize yourself with these important details of the HUB Capital/HUB Financial insurance policy:

• Policy period: January 1, 2025 – January 1, 2026
  • Premiums are prorated based on the date of purchase.
• Limits of insurance: In accordance with the limit purchased as evidenced on the issued certificate of insurance
  • There is no program aggregate.
• Territory: Applies only to claims made against the insured individual anywhere in the world, provided suits or judicial proceedings are brought against the insured within Canada, the U.S., its territories or possessions. or the District of Columbia.
• Deductible: $1,000 on life and mutual fund claims
• Defence costs: In excess of the limit of liability
  • The deductible is not applicable to defence costs.
• Prior acts: Are covered commencing as of the inception date of the insured’s first claims made professional liability insurance policy for professional services provided such coverage has been maintained in force and without interruption and there is no retroactive date applied. Prior knowledge of circumstance excluded.
• Coverage for appearance before a disciplinary body: $20,000 sub-limit per insured agent, no deductible, no policy aggregate (every insured advisor may trigger this coverage)
• Vicarious liability coverage for firms: Extends to the managing general agency (MGA) through which the advisor is contracted to do business
• Extended reporting period coverage: 1–10 years can be purchased

This is professional liability (E&O) coverage is for your life licensed company and a separate policy from your individual E&O coverage.

If your life licensed company is a “Personal Corporation” and meets the following parameters you may not require this separate policy:

1. Is owned solely by the insured advisor; and
2. Has no other licensed advisors representing the company; and
3. Has no employees (1 unlicensed assistant is permitted); and
4. Is NOT licensed in Alberta, Saskatchewan, Quebec, or Newfoundland

In this instance coverage can be included as a shared limit in your individual E&O policy.

If your company is a Personal Corporation that does NOT meet these parameters you will require Separate Corporate E&O coverage.

NOTE: Vicarious liability coverage is NOT E&O coverage for your company.

*The Alberta Insurance Council confirmed that if an Advisor is Personally and Corporately Licensed in ONLY Alberta. The Advisor would ONLY need a Separate Corporate E&O Policy – no need to have both Personal and Corporate E&O. However, if the advisor is licensed in Alberta along with other Provinces. All other Provinces would require the advisor to have Personal E&O Coverage in place*

If you have any questions with regards to this matter, please feel free to contact:

• Alberta Insurance Council Compliance Team:
• Phone: 1-800-461-3367 – Ext. 18
• Email: compliance@abcouncil.ab.ca

To purchase separate corporate E&O coverage, contact Marc Perpuse, or if you are in Quebec, contact Daniel Trottier.

Additional coverage available through this program includes:

• Transactional error coverage: Maximum coverage of $25,000 with a $5,000 deductible inclusive of the limit
• Additional premium is $200 per advisor.
• PrivaSure (Cyber) coverage: $250,000 limit, $5,000 deductible - $5,000,000 total program aggregate
• Included; no additional premium
• Cost of Corrections: $25,000 limit, $5,000 deductible
  • Included; no additional premium
• Fraudulent Redemption Endorsement: $100,000 limit, $1,000 deductible
  • Included; no additional premium

Claims Reporting Information

Our program provides regulatory compliant coverage for life and/or mutual funds licensed advisors wherever they are licensed in Canada. However, in provinces where a separate limit of insurance is required for a licensed firm or corporation, corporate coverage needs to be purchased.

Price includes fraud coverage for life insurance advisors in Ontario, Saskatchewan, Alberta, Manitoba and Newfoundland.

Premiums will be prorated to the date that you apply based on a January 1 – January 1 policy period.

A $45 broker fee will apply.

HUB Capital Representatives only

Coverage A+B: For advisors with life insurance and/or accident/sickness insurance licenses, segregated funds and mutual funds licenses.

Limits (occurrence/aggregate)	2025 Premium (per advisor)
$1 million / $2 million	$525
$2 million / $2 million	$695
$3 million / $3 million	$785
$4 million / $4 million	$1,100
$5 million / $5 million	$1,395

HUB Financial Brokers only

Coverage A+B: For advisors with life insurance and/or accident/sickness insurance licenses, segregated funds and mutual funds licenses. For advisors who place mutual fund business through a mutual fund dealership that is not HUB Capital Inc.

Limits (occurrence/aggregate)	2025 Premium (per advisor)
$1 million / $2 million	$625
$2 million / $2 million	$795
$3 million / $3 million	$885
$4 million / $4 million	$1,200
$5 million / $5 million	$1,495

Coverage A: Licensed life /accident and sickness/segregated funds advisors

Limits (occurrence/aggregate)	2025 Premium (per advisor)
$1 million / $2 million	$460
$2 million / $2 million	$590
$3 million / $3 million	$680
$4 million / $4 million	$950
$5 million / $5 million	$1,250

HUB Capital Representatives and HUB Financial Brokers

Coverage C: Licensed life assistants only

Limits (occurrence/aggregate)	2025 Premium (per assistant)
$1 million / $2 million	$225