British Columbia’s new mortgage brokerage rules bring a concrete insurance deadline on October 13, 2026. From that date, a licensed brokerage must carry errors and omissions insurance meeting BC Financial Services Authority Regulatory Statement 26-007. This isn't simply a direction to buy a policy. BCFSA specifies the limits, the kinds of work covered and when protection must continue after a brokerage stops operating.
The policy must provide at least $500,000 for one occurrence involving the brokerage or a related principal broker or mortgage broker, and $1 million for all occurrences in a 365 day period. It must extend to losses resulting from fraudulent acts. Coverage must match the licensed mortgage services, whether dealing, trading, administering or lending. A policy written for a narrower business may leave a brokerage out of compliance even if it has purchased insurance.
The reporting tail is particularly important. BCFSA requires three years of extended reporting coverage after a merger, winding up, cancellation or suspension of the brokerage’s licence. Claims can emerge after a business relationship ends. A policy's last annual renewal isn't necessarily the end of the insurance obligation.
BCFSA also addresses businesses operating in several provinces. A claim in one province must not reduce the minimum insurance available in another. Separately licensed brokerages can't share the same coverage merely because they're affiliated. Those conditions matter to corporate groups that have relied on one professional liability placement for several related entities.
The regulator must be notified immediately if the policy is cancelled, isn't renewed, drops below the required minimum or responds to a claim. Changes to specified policy details must be submitted within 30 days. New and renewing licence applicants must disclose their insurer, limits, renewal date and confirmation of adequate coverage.
The practical work is checking the actual contract against these requirements before October 13, not assuming an existing E&O certificate is sufficient. Limits, fraud coverage, service categories, reporting tail and arrangements between affiliated brokerages all deserve attention. These requirements concern mortgage brokerages rather than insurance broker licensing generally, but they show how professional liability insurance can function as a continuing regulatory obligation rather than an optional business purchase.