Know Your Policy

Today, exposure to claims and the related need for liability insurance is simply a reality of practice. You are urged to spend some time familiarizing yourself with your insurance policy.

Mandatory insurance
Liability insurance for Ontario lawyers is mandatory for two reasons:

• to protect the public
• to ensure that all lawyers have equal access to liability insurance.

This requirement that you must be insured is in itself a risk management tool in that it protects you and your client from the financial consequences of a mistake.

Knowing your policy
Knowing what's covered -- and what's not -- is an important part of managing the risk associated with law practice:

• You have coverage of up to $1 million per claim and $2 million for all claims that could be made against you annually.

• A claim is defined as a demand -- or allegation against you -- of an error or omission in the services you provided.

• You are covered for professional services that you provide -- or ought to have provided -- in your capacity as a lawyer. The term "professional services" encompasses a lawyer's activities as an arbitrator, mediator, trustee or patent or trademark agent as long as these services are provided in your capacity as a lawyer.

• LAWPRO is obliged to defend you if a claim is made against you and to indemnify you for damages that result from a claim, as long as the claim does not arise from any dishonest, fraudulent, criminal or malicious act on your part.

• You in turn are obliged under both the LAWPRO policy and the Rules of Professional Conduct of the Law Society to report a claim. You also must cooperate with LAWPRO in defending the claim.