Thursday December 18, 2025 | VICTORIA, BC [Posted at 2:41 pm]
by Mary P Brooke | Island Social Trends
Starting in January 2027, new rules will soon give people the right information about incidental, or add-on insurance on products and services they buy or rent.
The Restricted Insurance Agent Licence Regulation comes into force January 1, 2027 with a three-month transition period until March 31, 2027, giving businesses time to apply for a licence and adjust to the new requirements.
This includes oversight of the sale of add-on insurance for products like electronics, farm or construction equipment and rental vehicles protects consumers. This is a significant step up from the current situation where BC’s restricted insurance licence applies only to travel agencies when selling travel insurance.
The new rules establish representatives to ensure oversight and compliance in the sale of add-on insurance.
Making informed decisions:
The BC Finance Ministry says that the new licensing rules that will require businesses to help people make informed decisions about buying add-on insurance for products or services, such as electronics, construction equipment or rental vehicles under a new restricted insurance-agent licence.
Incidental insurance:
“Too often, people feel pressured or uncertain when offered add-on insurance with purchases like electronics or mortgages,” said Brenda Bailey, Minister of Finance in a news release today.
“We’re making sure businesses offering this type of insurance are licensed and equipped to provide clear information, so consumers can make good, cost-effective decisions,” says Bailey.
By ensuring incidental insurance is sold transparently and responsibly, the new framework protects consumers from unclear or unnecessary costs and empowers them to make choices that fit their needs and budgets, the Ministry states.
Licence required:
As insurance products have grown in complexity, cost and value, certain businesses that sell incidental insurance through their employees or agents will soon need to have a restricted licence that comes with rules to protect buyers.
Some businesses previously exempt from licensing requirements for incidental-insurance sales will need to obtain a restricted-insurance agency licence. Others with existing limited licences may transition to the new framework, provided their products fall within the scope of the regulation.
Providing oversight and clarity for customers:
The restricted insurance-agent licence will bridge the gap between full-insurance licensing and the current lack of oversight for incidental insurance sales. Sales representatives will have to be trained to provide consumers clear, accurate information before purchasing.
Businesses that are eligible for the new licence include:
- construction-equipment dealers
- customs brokers
- farm implement dealers
- mortgage brokers
- motor vehicle dealers
- portable electronic vendors, and
- others
Clarity for consumers and sales personnel:
Stronger oversight will help provide clarity for consumers and salespeople. For example, under the new licensing framework, stores must train employees on warranty insurance terms, reducing the risk of misleading claims about product coverage.
Strengthening the restricted insurance agency licence:
The Insurance Council of BC will administer the licensing process and develop rules that define licence-holder responsibilities, including:
- licensing requirements;
- qualifications and oversight roles for designated representatives who provide oversight and compliance; and
- core competencies and training standards for employees.
Where this applies:
Here is a list of Restricted Insurance Agent Licence eligible businesses and their associated insurance products (as provided by the BC Ministry of Finance):
- Construction equipment dealers: credit protection insurance, construction equipment warranty insurance, guaranteed asset protection insurance
- Credit grantors: credit protection insurance
- Custom brokers: cargo insurance
- Deposit-taking institutions: credit protection insurance
- Extra-provincial trust companies: credit protection insurance
- Farm implement dealerships: credit protection insurance, farm implement warranty insurance, guaranteed asset protection insurance
- Freight forwarding companies: cargo insurance
- Funeral providers: funeral services insurance
- Mortgage brokers: credit protection insurance
- Motor-vehicle dealers: credit protection insurance, guaranteed asset protection insurance, vehicle warranty insurance
- Peer-to-peer vehicle service providers: rented vehicle insurance
- Pleasure craft dealerships: credit protection insurance, guaranteed asset protection insurance, pleasure craft warranty insurance
- Portable electronic vendors: portable electronic insurance
- Transportation companies: cargo insurance, travel insurance
===== RELATED:
NEWS SECTIONS: RETAIL | CUSTOMER SERVICE | DIGITAL TECH