Ontario broker reprimanded after never telling clients water damage wasn't covered

On June 25, 2026, a discipline panel of the Registered Insurance Brokers of Ontario found broker William Derek Galloway guilty of misconduct, on his guilty plea and an agreed statement of facts, for never telling two clients that their Aviva policy carried no water damage coverage. The panel ordered a reprimand, a $2,000 fine and three hours of education on client communication. The decision was published on CanLII as William Derek Galloway, 2026 ONRIBODC 11, and reported on October 6, 2026.

The couple owned two properties, and neither carried a water damage coverage endorsement. In September 2023 Galloway was told they were moving and would rent out the original home; he made the changes effective October 1, 2023. His file notes recorded that sewer backup coverage was unavailable because the property was in a high-risk area, but he did not approach other markets for terms that might have included it, relied on the clients to ask about the coverages they needed, and never offered or pointed out the missing water cover.

The clients filed a water damage claim on July 16, 2024, and Aviva denied it because no such coverage existed. The husband complained to RIBO on August 16, 2024, and Galloway acknowledged to RIBO's Complaints Officer that he should have been more upfront in his communications. In its penalty reasons the panel called water damage 'one of the costliest and most frequent claims for homeowners' and treated the clients' mistaken belief that they were protected as an aggravating factor.

A RIBO reprimand, a $2,000 fine and three hours of education — after clients absorbed a denied water damage claim.

He knew water damage coverage was not available and had noted that sewer backup could not be obtained, yet never clearly told the clients the cover was absent.

He relied on the clients to ask about the coverages they needed instead of volunteering the gap.

He did not approach other markets for terms that might have included the coverage.

Code paragraph 3 of O. Reg. 991 requires conscientious, diligent and efficient service, and he admitted that failing to communicate the gap fell short of that standard.

A coverage gap you can see and your client cannot is your disclosure to make; silence turns a policy limitation into professional misconduct the first time a claim lands.

The panel accepted a joint submission on penalty effective the day of the hearing: a reprimand; a $2,000 fine payable within 30 days by cheque to RIBO payable to the Minister of Finance; and three hours of RIBO-accredited education on client communication within six months, on top of his annual continuing education, with completion reported to RIBO. In mitigation the panel weighed his full cooperation, early admission and remorse, and noted no prior discipline history across his years of registration since around March 1990. The reasons were published on CanLII as 2026 ONRIBODC 11.