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2015 insurance coverage for exempt lawyers
- in-house corporate counsel
- government lawyers, educators and others not in active private practice
- retired lawyers, estate trustees, emeritus lawyers, judges and others no longer practising law
- legal aid clinic lawyers (not directly employed by Legal Aid Ontario)
- lawyers who engage in only occasional practice in Ontario and are resident in a Canadian jurisdiction other than Ontario
The standard Run-Off coverage
Provided at no charge to all lawyer members of the Law Society who are not in active private practice who qualify for exemption1 from payment of insurance premiums and levies.
$250,000 per claim/in the aggregate, not re-instated annually, subject to the following:
- applies to claims arising out of services provided while the lawyer was in private practice or otherwise maintained the full ongoing practice coverage
- does not provide coverage for claims arising out of any services a lawyer provides while exempt from paying the insurance premium. The only exceptions to this are with respect to pro bono legal services provided through an approved pro bono legal services program associated with Pro Bono Law Ontario, with respect to qualifying mentoring activities, or where the lawyer has applied for and purchased additional coverage specifically for certain services yet to be performed as estate trustee, trustee for inter vivos trust, or attorney for property, as described further
- applies to claim expenses, indemnity payments and/or costs of repairs together
- includes a sublimit coverage of up to $250,000 per claim/in the aggregate for Innocent Partner claims
- includes a sublimit coverage of up to $250,000 per claim/in the aggregate for cybercrime claims
None for standard Run-Off coverage.
Deductible for Run-Off coverage is $5,000 per claim applicable to claim expenses, indemnity payments and/or costs of repairs together.
Optional insurance coverages
Increased Run-Off coverage protection
- optional for lawyers with only the basic Run-Off coverage who are concerned that claims now and in the future may exceed $250,000 per claim/aggregate; or
- optional for lawyers named or acting as estate trustee, trustee for inter vivos trust, or attorney for property as residual work from their former law practice who wish to purchase expanded coverage for these services yet to be performed.
Exempt lawyers can apply to increase Run-Off coverage limits to:
- $500,000 per claim/aggregate or;
- $1 million per claim/$2 million in the aggregate. Terms ranging from two to five years are available.
Lawyers acting as estate trustee, trustee for inter vivos trust, or attorney for property:
Exempt lawyers can apply to increase Run-Off coverage protection to include protection for services yet to be performed as estate trustee, trustee for inter vivos trust, or attorney for property, as follows:
- apply for and purchase expanded protection for these services within the standard $250,000 Run-Off coverage limit and/or
- apply for and purchase expanded protection for these services within the Increased Run-Off coverage limits, as described above
Through a deeming provision, ongoing activities of this type may be included under the Run-Off coverage protection provided to you.
Underwritten on an individual basis, depending on the years practised, areas of law practised, the amount of time since the applicant was in private practice, and other risk-based factors.
Innocent Partner Sublimit Buy-Up
Optional for exempt lawyers who have applied for increased
Run-Off coverage and who may be concerned about their innocent partner exposure.
Coverage limits & premiums:
Innocent Partner Sublimit coverage can be increased as follows:
- to $500,000 per claim/aggregate for an additional five per cent of the increased Run-Off coverage premium or
- to $1 million per claim/aggregate for an additional eight per cent of the increased Run-Off coverage premium
Excess insurance for law firms and lawyers with topped-up Run-Off coverage
Available to law firms (including MDPs and CLFs), and to lawyers with topped-up Run-Off coverage.
The following Excess limits are above the $1 million per claim/
$2 million in the aggregate limits of the primary program. Coverage is provided on a firm basis (i.e., for all firm lawyers for services on behalf of the firm):
- $1 million per claim/$1 million in the aggregate
- $2 million per claim/$2 million in the aggregate
- $3 million per claim/$3 million in the aggregate
- $4 million per claim/$4 million in the aggregate
- $9 million per claim/$9 million in the aggregate
Underwritten on a firm-wide basis, based on a risk assessment of information provided in the Excess insurance application, marketing materials of the firm and supporting documentation.