To be authorized to pursue activities, you must hold valid liability insurance and send proof of your coverage to the AMF.

Liability insurance covers insured firms and representatives against the monetary consequences of their liability or that of their employees, mandataries and trainees in the event of error, omission, fault or negligence committed when carrying out their activities. This insurance may compensate clients who are the victims of an error or fault committed by the insured, within the coverage limits.

Note that professional liability insurance does not cover intentional fault.

Information about your insurance policies is available in E-Services under:

  • Client File > Reports > Generate a report > List of coverage for a firm; OR
  • Insurance and Financial Planning > Application for liability insurance > Consult an insurance policy.

Consult the definitions of terms and actions

Insight

Important information about the five-year extension of coverage

The mandatory clauses of an insurance contract specify that liability insurance continues to apply for a further term of at least five years beyond the insurance period. For this reason, firms and attached representatives do not need to hold insurance during this period if they are no longer pursuing activities.

End of the insight

The AMF sends firms a list of the insureds covered under each of their liability insurance contracts that will expire in 45 days. Firms must send proof of liability insurance for each of these contracts within 45 days of the request made by the AMF.

Firms that have renewed their insurance with the same insurer must send the AMF a “Professional Liability Insurance” form and select the “renew your professional liability insurance” option. This option must be selected even if the last digits of the policy number, the coverage limits or the deductible have changed. The AMF will make the necessary corrections when processing the form.

Firms that have changed insurers for insurance that would soon expire must select the “add a new professional liability insurance policy” option on the form to notify the AMF of the new insurance.

Representatives who are attached to a firm but are not employees and who renew the insurance in their name must send a copy of the insurance certificate to the firm they are attached to rather than to the AMF. The firm is responsible for forwarding it to the AMF via E-Services or by mail.

How to send your information

If you are registered for E-Services

  1. Begin by logging in to E-Services. If you are an independent representative, select the “My registration as an independent representative” access mode.
  2. Under the “Insurance and Financial Planning” menu, select “Application for liability insurance.”
  3. Validate the information in the identification section.
  4. Select “Renew an insurance policy” and select the policy to be renewed. This action is possible only if you renew your insurance with the same insurer.
  5. Tick the renewal term (One year or More than one year). If the renewal term is more than one year, enter the expiry date.
  6. Select “Insurance certificate” as the supporting document and then the transmission method. If you choose the “paper” option, you must send a copy of your insurance certificate by mail.
  7. Tick the declaration box and submit the application.

When the AMF receives the insurance documents, it will send the firm an “Acknowledgement of receipt - application for liability insurance.” The AMF will contact the firm only if documents are missing or adjustments are required. The firm will not receive any confirmation when the analysis of the application has been completed.

If you are not registered for E-Services

  1. Complete the Professional Liability Insurance (pdf - 153 KB)This link will open in a new windowUpdated on 19 April 2013 form .
  2. Send your form and a copy of your insurance certificate by mail.

The AMF will contact the firm only if documents are missing or adjustments are required. No confirmation is sent to the firm when the analysis of the application has been completed.

You must add an insurance policy in one of the following situations:

  • The firm has changed insurers for its professional liability insurance;
  • A representative is attached to a firm without being an employee. In this case, the representative is not covered by the firm’s insurance (the representative holds an individual policy).

For help with completing the application, refer to the “Definitions of terms and actions”.

How to send your information

If you are a firm

If you are registered for E-Services

1- Log in to E-Services.

2- Under the “Insurance and Financial Planning” menu, select “Application for liability insurance.”

3- Validate the information in the identification section.

4. Select “Add a new insurance policy.”

5- Enter the policyholder’s client number and validate the name displayed on screen. The policyholder may be your firm or one of your attached representatives who is not an employee. You must enter the client number and validate it. Refer to the Register of firms and individuals authorized to practise, if necessary.

6- Complete the following fields:

  • Policy number
  • Wording number (not mandatory)
  • Insurer: Select the insurer from the drop-down list. If the insurer’s name does not appear in the list, tick “Display all insurers.”
  • Date of issue
  • Expiry date
  • Coverage amount
  • Amount of coverage per claim
  • Deductible

7- Insured

If the firm is the policyholder, you must select the following two insureds:

  • Firm/Partnership
  • All employees

If the representative who is attached to the firm without being an employee is the policyholder, you can only choose:

  • An attached representative who is not an employee

8- Sector/sector class

Select the first insured and add all the sectors in which the firm holds a valid right to practise (one sector at a time):

For each sector:

  1. Click on + Add.
  2. Select the sector from the drop-down list.
  3. Tick the “Apply the covered sector to all insureds” box.

9- Supporting documents required. You must attach the following two documents:

  • Professional liability insurance certificate
  • Professional liability insurance contract

If you choose the “paper” option, you must send a copy of your documents by mail.

10- Declaration on information provided

  • Tick the declaration box and submit the application.

When the AMF receives the insurance documents, it will send the firm an “Acknowledgement of receipt - application for liability insurance.” The AMF will contact the firm only if documents are missing or adjustments are required. No confirmation is sent to the firm when the analysis of the application has been completed.

If your firm is not registered for AMF E-Services

  1. Complete the Professional Liability Insurance (pdf - 196 KB)This link will open in a new windowUpdated on 19 April 2013 form».
  2. Mail in your form, a copy of your insurance certificate and a copy of your professional liability insurance contract.

The AMF contacts firms only if documents are missing or adjustments are required. No confirmation is sent to notify firms that the analysis of the application has been completed.

If you are an independent representative

If you are registered for E-Services

1- sign in to E-Services.

2- Under the “Insurance and Financial Planning” menu, select “Application for liability insurance.”

3- Validate the information in the identification section.

4- Select “Add a new insurance policy.”

5- Complete the following fields:

  • Policy number;
  • Wording number (not mandatory)
  • Insurer: Select the insurer from the drop-down list. If the insurer does not appear in the list, tick “Display all insurers.”
  • Date of issue
  • Expiry date
  • Coverage amount
  • Amount of coverage per claim
  • Deductible

6- Insured.

  • Firm/Partnership is the only insured you can select.

7- Sector/Sector class.

You must add all the sectors in which you hold a valid right to practise (one sector at a time):

  1. Click on + Add.
  2. Select the sector from the drop-down list.

8- Supporting documents required.

You must attach the following two documents:

  • Professional liability insurance certificate
  • Professional liability insurance contract

If you choose the “paper” option, you must send a copy of your documents by mail.

9- Declaration on information provided.

  • Tick the declaration box and submit the application.

When the AMF receives your insurance documents, it will send an “Acknowledgement of receipt - application for liability insurance” to the firm. The AMF contacts firms only if documents are missing or adjustments are required. No confirmation is sent to notify firms that the analysis of the application has been completed.

If you are not registered for E-Services

  1. Complete the Professional Liability Insurance (pdf - 196 KB)This link will open in a new windowUpdated on 19 April 2013 form.
  2. Mail in your form, a copy of your insurance certificate and a copy of your professional liability insurance contract.

The AMF will contact the firm only if documents are missing or adjustments are required. No confirmation is sent to the firm when the analysis of the application has been completed.

If you are a representative attached to a firm

Employee or non-employee

As an employee of the firm

You are automatically covered by your firm’s insurance.

Without being an employee of the firm

If you hold individual insurance, you must send a copy of your insurance certificate to the firm to which you are attached. Do not send it to the AMF.

The firm is responsible for forwarding a copy of your insurance to the AMF.

Failure to maintain professional liability insurance that is consistent with the Distribution Act and its regulations has serious implications.

The AMF may suspend or cancel the registration already granted to a firm if it or any of its representatives is no longer covered by professional liability insurance. Representatives or firms could therefore lose the right to practise if they fail to maintain a professional liability insurance contract determined by regulation. A monetary administrative penalty is imposed on the firm when the AMF suspends the firm’s registration. The AMF may also refuse an application for a certificate or registration.

Suspension or revocation of right to practise and administrative penaltieses

Suspension procedure

  1. Notice issued by the AMF prior to a decision

    The AMF notifies a firm has not complied with its obligation to maintain professional liability insurance that it intends to issue a decision suspending its right to practise 15 days prior to suspending its registration.

    The firm must send the AMF the requested document(s) via E-Services or by mail before the suspension date indicated in the notice.

    If the firm does not comply with the notice, the AMF will make a decision about its registration and may impose a monetary administrative penalty on the firm and suspend its registration, or if the offence is not a first offence, cancel it.

    All decisions rendered by the AMF are published in its Bulletin.

  2. Suspension or cancellation of registration

    The AMF sends the firm a suspension or cancellation decision and may impose an administrative penalty for failure to submit liability insurance.

    The registrant and all of its representatives must cease to pursue activities until the suspension is lifted.

  3. Procedure for lifting the registrant’s suspension

    The suspension is lifted as soon as the AMF receives the requested document(s) and payment of the monetary administrative penalty. The registrant is notified when its suspension is lifted.

The registrant’s professional liability insurance must also be valid and comply with the following sections:

Act respecting the distribution of financial products and services

Sections: 

76 This link will open in a new window, 78 This link will open in a new window, 83 This link will open in a new window, 131 This link will open in a new window, 132 This link will open in a new window, 136 This link will open in a new window

Regulation respecting the pursuit of activities as a representativesection 17 This link will open in a new window   
Regulation respecting firms, independent representatives and independent partnershipssection 29 This link will open in a new window

For firms

Coverage

For errors, fault, negligence or omissions committed in the pursuit of their activities in the sectors for which they are legally authorized.

For the following persons, regardless of whether or not they are still so engaged on the date of the claim:

  • Their mandataries
  • Their employees
  • Attached representatives who are employees (see section below)
  • Representatives’ trainees

Amount of coverage, per insured
  • Minimum $500,000 per claim
  • Minimum $1,000,000 per year if there are three representatives or fewer acting on behalf of the firm or independent partnership
  • Minimum $2,000,000 if there are more than three representatives acting on behalf of the firm or independent partnership

These amounts may not be shared among several insureds under the same contract.

Deductible
  • Maximum $10,000 if there are three representatives or fewer acting on behalf of the firm or independent partnership
  • Maximum $25,000 if there are more than three representatives acting on behalf of the firm or independent partnership

The deductible may be greater than the maximum authorized amount provided that the insured designated in the contract agrees to maintain at all times liquid assets at least equal to the amount stipulated in the insurance contract. The insured must file a Statement of deductible exceeding the regulatory limit (pdf - 19 KB)This link will open in a new windowUpdated on 17 May 2018statement, deductible, deductible exceeding the regulatory limit, professional liability insurance, with the AMF every year.

Extension of coverage
  • Five years beyond the insurance period provided
  • As of the date registration was suspended or cancelled
  • As of the date the representative attached to the firm without being an employee ceases to pursue activities, irrespective of whether or not he is still alive

Notice of cancellation or non-renewal by the insurer

The insurer must notify the AMF 30 days before cancelling the contract.

Notice of cancellation or non-renewal by insured

The insurer must notify the AMF upon receiving a notice of cancellation of contract from the insured.

Notice of claim

The insurer must notify the AMF upon receiving any claim.

For independent representatives

Coverage

For errors, fault, negligence or omissions committed in the pursuit of activities in the sectors in which they are legally authorized.

For the following persons, regardless of whether or not they are still so engaged on the date of the claim:

  • Their mandataries
  • Their employees
  • Representatives’ trainees

Amount of coverage, per insured
  • Minimum $500,000 per claim
  • Minimum $1,000,000 per year

These amounts may not be shared among several insureds under the same contract.

Deductible
  • Maximum $10,000 per year

The deductible may be greater than the maximum authorized amount provided that the insured designated in the contract agrees to maintain at all times liquid assets at least equal to the amount stipulated in the insurance contract. The insured must file a Statement of deductible exceeding the regulatory limit (pdf - 19 KB)This link will open in a new windowUpdated on 17 May 2018statement, deductible, deductible exceeding the regulatory limit, professional liability insurance, with the AMF every year.

Extension of coverage
  • Five years beyond the insurance period provided
  • From the time the representative is struck off the roll or suspended

Notice of cancellation or non-renewal by the insurer

The insurer must notify the AMF of its intention 30 days prior to the date of non-renewal or cancellation.

Notice of cancellation or non-renewal by the insured

The insurer must notify the AMF upon receiving notice of cancellation of a contract from the insured.

Notice of claim

The insurer must notify the Authority upon receiving any claim under the contract.

For representatives attached to a firm

who are employees of the firmA representative attached as an “employee” is a salaried employee. Revenu Québec considers a person to be an employee if, under a written or verbal contract, he undertakes to do work for remuneration under the direction or control of the firm. They must be covered by the firm’s liability insurance contract.
without being employees of the firmA representative who is attached to a firm “without being an employee” is self-employed. He can act on behalf of one or more firms, an independent partnership, a mutual fund dealer or a scholarship plan dealer. Revenu Québec considers a person to be a self-employed worker if he is free to choose the means of carrying out a contract and no relationship of subordination exists between the worker and the firm.

If they are not automatically covered by the liability insurance contract of the firm to which they are attached, the firm must ask them to purchase a liability insurance contract. The clauses of the contract must be equivalent to those pertaining to independent representatives.

However, some insurance contracts purchased by firms could provide for additional clauses that cover attached representatives who are not employees of the firm. Consult your insurer. Representatives should review this type of contract carefully to ensure that they are covered for all the sectors for which they are authorized and for the amounts prescribed by AMF regulations.

Familiarize yourself with E-Services

Watch the video to learn how to submit information via E-Services to fulfil your professional liability obligations.

Definitions of terms and actions

Insurer

Name of the insurer covering the risk registered with the AMF. Not to be confused with the name of the broker issuing the policy on behalf of the insurer.
Insured

The following are the insureds who can be covered by the professional liability insurance policy:

  • Firm: This insured must be selected when the registrant is a firm or independent representative covered by the policy.
  • All employees: This insured is mandatory in the case of a firm (“all employees” includes all attached representatives who are employees).
  • All attached representatives who are not employees: The registrant must select this insured when all representatives acting on its behalf without being employees are covered by the registrant’s policy without being specifically named.
  • A defined group of attached representatives who are not employees: The registrant must select this insured if an attached representative who is not an employee is covered by an individual policy and the representative is the policyholder.
  • An attached representative who is not an employee: The registrant must select this insured if an attached representative who is not an employee is covered by an individual policy and the representative is the policyholder.
You cannot select both “all attached representatives who are not employees” and “a defined group of attached representatives who are not employees” as insureds for the same policy.
Application for liability insurance

The following actions are possible:

  • Renew: To submit proof that a policy has been renewed with the same insurer.
  • Consult: To consult all policies (active or that have been expired for less than 60 days) covering the registrant and its representatives.
  • Modify: To modify the information in an active policy, except for the policyholder, policy number, insurer, issue date and expiry date. For example, adding a representative to a defined group of attached representatives who are not employees.
  • Add: To add a new policy.
 
Required supporting documents  
  • Professional liability insurance endorsement: Document attached to an insurance policy that indicates the amendments to the policy. Specifically, a Québec endorsement to ensure that the policy meets the AMF’s requirements.
  • Professional liability insurance certificate: Document issued by the insurer that certifies the existence of a contract covering the risk and summarizing the coverage under the policy. It is the equivalent of the certificate of insurance that you receive with your automobile insurance policy. Some insurers call this an “insurance card.” Important: This document is required in order to make a liability insurance claim.
  • Professional liability insurance contract: Contract under which an insurer undertakes, in exchange for a premium, to cover the liability of the insureds in the event of a claim. The policy is the document that attests to the existence of the insurance contract and contains all of the clauses specific to the contract.
  • Statement of deductible exceeding the regulatory limit (pdf - 19 KB)This link will open in a new windowUpdated on 17 May 2018statement, deductible, deductible exceeding the regulatory limit, professional liability insurance,: This statement must be provided when the deductible exceeds the limit prescribed by regulation. It attests that the registrant is maintaining liquid assets at least equal to the amount stipulated in the contract at all times.
 
Policyholder

Individual or registrant that enters into an insurance contract for itself or for a third party. The insured and the policyholder may be the same person.

For an individual policy in the name of a representative, the representative will be both the policyholder and the insured.
Representative attached to a firm  
  • As an employee: Revenu Québec considers a person to be an employee if, under a written or verbal contract, he undertakes to do work for remuneration under the direction or control of a firm.
  • Without being an employee: Revenu Québec considers a person to be a self-employed worker if he is free to choose the means of carrying out a contract and no relationship of subordination exists between the worker and the firm. He can act on behalf of one or more firms, an independent partnership, a mutual fund dealer or a scholarship plan dealer.