Lawyers Professional Liability Insurance
There are two types of Professional Liability policies in use, Claims Made and Occurrence .
A claims-based insurance policy is a type of professional indemnity insurance that covers claims or circumstances declared during the current policy period even if the error or omission occurred before the periods.
Under an event-based policy, the policy in effect at the time of the act, error or omission covers the claim, not the one in effect at the time the claim was made.
Vicarious liability is when someone is held responsible for the actions or mistakes of another person due to their relationship with them. For example, if an employee in a company does something wrong, their employer might be held responsible because of their connection to the employee.Its also similar to what LawPro refers to as "Innocent Partner Coverage".
Drop-down coverage is an additional insurance option that increases the coverage limit for certain situations, like vicarious liability. It can also become the primary coverage if the main insurance policy doesn't cover a specific situation or if its coverage limit has been used up
We need a letter from the law firm that includes the name of the lawyer, the date they passed the bar and the date they joined the firm. Upon receipt of this letter, the lawyer will be automatically added to the policy with no additional premium until the next renewal, when all lawyers will be tallied again.
This can be done on a case-by-case basis with approval from insurer and at an additional premium. The additional premium is not fixed and must be negotiated with the Insurer.
No,due to the nature of the policy, no refund will be given. Any claim arising out of services performed while he was a member of the firm will still be covered subject to the conditions of the policy.
One policy should cover all lawyers working together to protect the entire entity. Vicarious liability should be covered in this policy. Separate policies can be arranged, excluding other lawyers.
You can add an Extended Reporting Period to your policy for an additional cost which allows you to report claims related to your work even after you retire, for a specified time. The cost of this extension is as follows:
- 1 year @ 100%
- 2 years @ 170%
- 3 years @ 230%
- 4 years @ 275%
- 5 years @ 300%
- 6 years @ 300%
This coverage must be requested within 30 days of expiry or cancellation of the policy due to retirement.
It basically depends on the firm. The excess policy covers all current and past lawyers in the firm, if the firm requires excess policy, all lawyers must be included in the application for coverage and premium payment.
No, the policy is written in the name of the firm and provides one limit per claim for the entire firm, not per lawyer and covers all lawyers employed by that company.
Mortgage brokering is the process of helping clients find and negotiate mortgage loans from lenders. The excess policy no longer offers mortgage brokering coverage as an enhancement.
Any inquiries regarding the availability of mortgage brokering coverage can be directed to the Mortgage Brokers Association at (416) 631-0320.
It means the insurance limit is doubled for the total amount that the insurer will pay in one policy period. The excess layers from 1 to 9 million are single annual aggregate, but everything sitting excess of 1 million is a single annual aggregate.
The policy covers predecessor firms, which are partnerships that have dissolved and at least 50% of the partners or employed lawyers have joined the new firm. The predecessor firm's name must be included in the coverage application.
No, coverage cannot be purchased for individual cases or files. Insurance coverage is purchased for the entire firm and covers all activities that fall under the definition of insured services.