Errors & Omissions Insurance Audits

The purpose of errors and omissions (E&O) insurance audits are to enhance public protection through the proactive review of licensee E&O insurance. 

The auditor works with licensees to identify and address potential gaps or issues with their coverage before complaints are received by providing feedback so that licensees can ensure they are meeting the requirements under the Insurance Council Rules

Who is subject to E&O audits?

Any Insurance Council licensee may be subject to an audit. Audits are performed annually and selected based on identified risk areas, as well as by random selection. 

What is the E&O audit process?

  • An audit letter is sent to the individual licensee or agency’s nominee. 
  • The licensee will be given 21 days from the date of the letter to reply and provide documentation, such as an E&O Declaration Page, which will be reviewed by Insurance Council’s Practice & Quality Assurance Team.  
  • If no issues are identified, and clarification is not required, the licensee will be provided with a closed audit letter to confirm the receipt of documentions and further response is not needed. At that point the audit is complete. 
  • Based on what is provided to the Insurance Council, we may reach out if: 
    • It is identified that further guidance would be beneficial, or if a response in the audit is unclear, 
    • We may have recommendations on what a licensee can incorporate into their E&O coverage that would provide a better level of protection to the licensee and the public to better reflect the individual licensee requirements. 
  • In cases where we have not received a response to the audit letter or there is a serious gap or lack of coverage, the matter will be reviewed further and could result in discipline.  

How do I prepare for an E&O audit?

  • Review your current E&O policy to ensure you meet our minimum coverage requirements.  
  • Review our website to ensure you understand and comply with the E&O insurance requirements, per Council Rule 7(11). 
  • Remember to consider your specific situation: 
    • If you are engaged in non-insurance business activities, such as financial advising or any other non-insurance business activity, or  
    • If you are licensed within or operating in provinces or territories in addition to British Columbia.
    • Your other activities may need to be insured separately or in addition to your Insurance Council of BC licensed activities. Consult your insurance provider to ensure your E&O policy meets the Insurance Council of BC requirements and amend as appropriate. Some insurers will provide a policy endorsement to ensure your coverage specifically reflects your Insurance Council of BC requirements. 

What are the areas an E&O audit will review?

As part of the E&O audit, you will be asked to provide a copy of your current E&O policy or Declaration Page to verify your coverage is in effect and that your coverage meets Insurance Council Rule 7(11). 


Have a question about E&O Audits? 
Please contact our Practice & Quality Assurance Team at