How we stand by our insured

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FCT is a title insurance pioneer in Canada and we are the only title insurer who can provide legal professionals additional E&O protection.

With an E&O Complete policy, you automatically protect every transaction you title insure with us. Here are some real-life claims stories to illustrate some of the issues we cover with our legal services protection.

$1,639.41 paid

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Almost 15 months after closing, the lawyer’s received an angry email because they had been charged over a thousand dollars in late fees on their property taxes. It turns out that the lawyer’s office had inadvertently forgotten to send the change of ownership notice and client’s mailing address to the municipality when the transaction closed. Because of that, the client didn’t get the tax bill until they had racked up $1,639.41 in fees. Fortunately, the lawyer had E&O coverage and was reimbursed the full amount after placing a claim with FCT.

$1,066.16. paid

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A lawyer made an assumption that resulted in a taxation error on the statement of adjustments. Using the information of the previous rather than the current year, the lawyer paid an outstanding tax bill, assuming that the client’s account had already been debited for the same amount. This resulted in an overpayment by the client and insufficient credit on the statement of adjustments. Assuming the client paid the deficit, the lawyer paid it out of their own pocket with the expectation that the client would reimburse her, but they didn’t. Luckly, the lawyer was covered by E&O Complete and was covered for the loss.

$4,351.36 paid

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A lawyer responsible for receiving the closing funds from out country clients for the purchase of a property in Ontario mistakenly provided the wrong wiring instructions and the funds went to the wrong bank. To resolve the error, the receiving bank had to send the funds back to the clients outside of the country, who then had to resend another wire. To make matters worse, the exchange rate had changed for the worse since the first transfer and the clients ended up out of pocket $4,351.36. Naturally, they expected to be compensated for their loss. Fortunately, the lawyer had E&O Complete and was covered for the full amount.

$2,500.00 paid

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When a lawyer’s clients were slapped with a $47,000 development charge, they were astounded. The lawyer had made an honest mistake in failing to advise them about this charge and that there was no cap on it. To maintain their reputation and keep their clients happy, the law firm was able to negotiate with the builder to cut the charge to $10,000. Based on a reasonable industry standard, the purchaser of a new home could expect to pay $7,500 in development charges so the clients paid up to that amount and the firm covered the remainder. The lawyer was out $2,500 – because they had E&O Complete, they were covered for the out-of-pocket amount.