Not discussing water damage coverage with a client has led to a $2,000 fine for William Derek Galloway, after a client’s denied claim resulted in a complaint to the broker’s regulator.
The Registered Insurance Brokers of Ontario (RIBO) reprimanded Galloway for failing to provide a quality of service expected of RIBO members.
“The complainant did not provide any documentation showing that either he or his wife specifically requested water damage coverage,” the decision and reasons document states. “The broker did not communicate with the complainant or his wife about the lack of water damage coverage.”
The couple complained to RIBO in August 2024 after their July 2024 water damage claim was denied. In the broker’s notes, Galloway wrote that sewer backup coverage was not available, as the property was in a high-risk area. “The broker did not notify the complainant or the complainant’s wife about the issue or approach other markets for terms which may have included this coverage,” they add. “The broker relied on the complainant and the complainant’s wife to inquire about the types of coverages they required, including with respect to the lack of water damage coverage.”
Later the document adds that following the complainant’s uninsured loss, Galloway admitted to RIBO’s complaints officer that he should have been more upfront in his communications.
In addition to the reprimand and fine, Galloway must also complete three hours of RIBO-accredited education, in addition to his annual continuing education obligations.
