RECO launches elective course on professional liability insurance

The Real Estate Council of Ontario (RECO) has launched a new elective continuing education course designed to help real estate professionals better understand the province’s Professional Liability Insurance Program, their obligations under it and the role it plays in consumer protection.

According to a RECO news release, the regulator developed the course after identifying, through consultation with the sector, insurance as an area where registrants would benefit from “additional targeted education.”

Focus on insurance obligations

The course provides an overview of the program’s three types of coverage — Errors and Omissions, Commission Protection and Consumer Deposit — and explains registrants’ insurance obligations under the Trust in Real Estate Services Act, 2002 (TRESA). It also includes scenarios demonstrating how the insurance program applies in practice.

By law, all registered real estate professionals in Ontario must carry professional liability insurance. RECO said the requirement is an important consumer protection measure that helps ensure “financial safeguards are in place” when consumers experience a loss resulting from a registrant’s error, negligence or other covered circumstances. The program also provides coverage to registrants for certain insured losses and claims.

“Professional liability insurance is much more than a registration requirement. It plays an important role in maintaining trust and confidence in Ontario’s real estate services sector,” said Jean Lépine, RECO’s administrator and acting CEO. 

The course includes a mandatory assessment that participants must successfully complete to receive continuing education credit.

RECO said the assessment is intended to provide “valuable insights” to help inform its broader work to modernize regulatory education.

Part of a bigger effort

The regulator said the course launch represents an early milestone in its broader continuing education modernization journey as it explores opportunities to “strengthen learning outcomes.”

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