claims reporting and handling

When to report a claim

Through the provisions of the LPIC insurance policy, insureds have a contractual obligation to report any incident which is the subject of a claim or which could give rise to a claim.

A claim is broadly defined as any written or oral demand for money or service; or any written or oral allegation of a breach in rendering professional services by the lawyer.

The Rules of Professional Conduct of the Law Society of Upper Canada also oblige lawyers to report.

Rule 3, Commentary 10 states that lawyers must promptly inform both the client and "an insurer or other indemnitor" of any "mistake which is or may be damaging to the client and which cannot be readily rectified...in connection with a matter for which the lawyer is responsible." The same section requires lawyers to "assist and co-operate with the insurer or other indemnitor to the extent necessary to enable any claim which is made to be dealt with promptly."

Rule 5, Commentary 15 states that "as soon as a lawyer becomes aware that an error or omission may have occured which may reasonably be expected to involve liability to the client for professional negligence, the lawyer shall inform the Lawyers' Professional Indemnity Company (LPIC) of the facts of the situation." The same Rule also outlines the other steps to take when you discover that you may have committed an error.

Underlying all of these requirements is the lawyer's obligation under the Rule to ensure that neither the client's nor the lawyer's rights of indemnity are prejudiced by the lawyer's actions.

How to report a claim
Contact:

Claims Coordinator
Lawyers' Professional Indemnity Company
250 Yonge Street, Suite 3101
Toronto, ON M5B 2L7
phone: (416) 598-5830 / (800) 410-1013
fax: (416) 599-8341 / (800) 286-7639
e mail: claims@LAWPRO.ca

Required information:

your name, the name of your firm, full mailing address and fax number;

name of your client;

brief description of your retainer, stating when you were retained, why you were retained and the nature of the negligence now being alleged as well as when the events took place which are the subject of the complaint;

the manner and date in which you became aware of the potential claim or claim;

any pertinent documentation relating directly to the claim;

a chronology of events; and

the amount of potential damages.

You can also file an online Claim Notice Report on the LAWPRO website at www.LAWPRO.ca.

The need to report promptly

LAWPRO has divided its claims management team into specific units. The New Claims Unit is charged with repairing or resolving the matter quickly and cost effectively. The examiner assigned to the problem will contact the lawyer within 24 hours, obtain as much information as possible and determine a strategy for your file. In many cases the examiners are able to think of a solution to the problem that avoids the claim and the need to defend it altogether.

It's particularly important for lawyers not to take steps on their own. The steps they take may make the situation worse and could jeopardize their insurance coverage.

LAWPRO's duties

LAWPRO's duties to the insured involve the duty to defend the insured member and the duty to indemnify the insured for all sums which the insured is legally obligated to pay as damages arising out of a claim, provided the liability is a result of an error, omission or negligent act in the performance of professional services. The policy will not indemnify a lawyer for claims arising directly or indirectly from any dishonest, fraudulent, criminal or malicious act. This exclusion is endorsed so that it does not apply to lawyers who practise in partnership, or in assocation with others or who have voluntarily purchased innocent party insurance coverage.

What to expect when you report a claim

You can expect that you will be contacted by an examiner experienced in professional liability and enter into discussions about the nature of the potential claim.

If further investigation is required you may be asked to meet with the examiner or an adjuster. If defence counsel is required you can expect to be involved in selecting the appropriate defence counsel.

All of our counsel have tendered to do LAWPRO defence work. The examiner and the insured member together select the lawyer best qualified to handle the specific claim. You will receive regular reports from defence counsel and copies of the accounts and budgets, and will be part of the strategy discussions. By working with you as a team member to resolve these matters, LAWPRO strives to provide lawyers with the highest quality claims service.