After an agency partnership broke up in 2017, the firms’ nominee overlooked the need to keep the firm’s errors and omissions (E&O) insurance up to date, until it was discovered six years and nine months later.

Mitigating and aggravating factors considered in the case, the Insurance Council of British Columbia fined the Ascension Group Benefit Consultants Inc. and its nominee, Vincent Grant Olfert $10,000 and $2,000 respectively, and jointly and severally assessed the council’s investigation costs in the amount of $500.

Discovered as part of an audit, the council was informed that the agency initially had three partners, one of whom was responsible for maintaining E&O coverage. The agency itself did not conduct insurance business but this was handled by another agency that Olfert was a nominee for, which had maintained the required E&O coverage.

“As the agency’s nominee, the nominee was responsible for the agency’s breach,” the intended decision states in the case. Although they noted that the oversight was not intentional, the significant period of time that the agency was not insured for was noted as an aggravating factor. “Additionally, the nominee’s experience in the industry suggested to council that he should have been well aware of the need for the agency to have E&O in place.” 

Although the mitigating factors in the case outweighed the aggravating factors, the insurance council says the circumstances were not sufficient to warrant a departure from baseline penalties.