E & O Extra
Now You're Covered - Completely.
As a legal professional, you provide expertise and counsel to your clients. Your professional opinion, along with a title insurance policy, ensures that you and your clients are protected in a real estate transaction. Notwithstanding the due diligence you undertake, errors can occur or issues beyond your control can arise. An example of this is as follows: a lawyer was retained to act on a resale transaction. During the course of the transaction, Mr. and Mrs. Smith indicated that in the future they might want to renovate or rebuild on the property. Two years after closing, the lawyer was notified by Mr. Smith that his application for a building permit was declined due to the fact that his proposed home would violate various local and municipal by-laws including density and side yard setbacks. Mr. Smith alleged that the lawyer did not provide proper advice in that he was not warned of this potential problem before finalizing the purchase of the property. As a result, Mr. Smith sued the lawyer for alleged negligence. In the case outlined above, the total cost of the claim to the lawyer was $17,500 being his deductible and the increase in premium over the following 5 years.
Whether you are at fault or not, invoking your E&O coverage, once a statement of defense is filed, is an immediate expense to you. Until now!
To supplement your current mandatory E&O coverage, FCT is pleased to offer a new "E&O Extra"* Policy. This policy is offered by our insurance broker FCT Insurance Services Inc., a member of the FCT group, for lawyers who purchase title insurance from FCT. This policy will reimburse you, in the event of a successful claim against you, for the deductible and increase in premium resulting from errors or omissions in connection with a residential or commercial real estate transaction provided it was title insured by FCT. In addition, if the claim against you is unsuccessful, you will be reimbursed for the deductible you are required to pay as outlined in your E&O policy
*Available in Ontario Only
