LAWPRO - E&O Insurance - FAQs - LAWYERS in Private Practice FAQs

If you have questions that are not answered below, or if you need further clarification or information, please contact LAWPRO^®'s Customer Service department toll-free at 1-800-410-1013, 416-598-5899 in Toronto or at service@lawpro.ca.

About DEDUCTIBLES

If I have a CLAIM, how much of the DEDUCTIBLE is called on and at what stage in the CLAIM?

DEDUCTIBLE(S) are applied as follows:

Where applicable to indemnity payments and/or costs of repairs only:

To judgments, settlements and/or costs of repairs, to the extent of the DEDUCTIBLE amount, when the judgment, settlement and/or cost of repair expenditure is due.

Where applicable to CLAIM expenses, indemnity payments and/or costs of repairs:

To covered investigation and defence expenses due or incurred when the Statement of Defence or responding material is filed, to the extent of 50% of the DEDUCTIBLE amount;
To covered investigation and defence expenses due or incurred at the time of commencement of examinations for discovery, or once examination begins, or once a pre-trial conference is held if no examination for discovery is held to the extent of 50% of the deductible amount;
To judgments,settlements, and/or costs of repairs, to the extent of any outstanding DEDUCTIBLE amount, when the judgment, settlement and/or repair exependiture is due.

Thus, a LAWYER with the standard $5,000 DEDUCTIBLE applicable to CLAIM expenses, indemnity payments and/or repairs costs would be required to pay $2,500 when a Statement of Defence of responding material is filed; and $2,500 once examination for discovery begins or once a pre-trial conference is conducted if no examination for discovery is held, assuming that the covered investigation and defence costs incurred exceed these amounts.

However, if the CLAIM is settled prior to a Statement of Defence or other responding material being issued, the DEDUCTIBLE would apply to any indemnity payment or costs of repairs incurred only. If in this scenario the indemnity and/or repair was less than the $5,000 DEDUCTIBLE, the LAWYER would be required to pay this lesser amount.

I was recently hired by an organization and my employer requires that I have a $10,000 deductible (applicable to CLAIM expenses, indemnity payments and/or costs of repairs together) on my insurance policy. I filed my application online but need to amend the deductible option. How do I do this?

Any requests for changes in DEDUCTIBLE can be done by completing an Application for Mid-Term Change form. Please contact LAWPRO Customer Service to have this application sent to you. Upon receipt of your completed Application for Mid-Term Change form, we will change your policy and send you a written confirmation (as well as a revised invoice if applicable).

I currently practise in a limited liability partnership (LLP). There are three LAWYERS in our firm. I want to choose the NIL deductible, but have been told by LAWPRO that because one of the LAWYERS in my firm has had a CLAIM reported that resulted in an indemnity payment being paid out, I don't qualify for the NIL deductible. Why don't I qualify for the NIL deductible?

LAWYERS practising in a Partnership (general, LLP) or in a Law Corporation (with more than one LAWYER) must choose and qualify for the same insurance coverage options. The NIL DEDUCTIBLE option is available only to LAWYERS who have no CLAIMS reported under the insurance program within 5 years prior to the policy effective date. All LAWYERS in the Partnership must meet this criterion in order for the members of the firm to qualify for the NIL DEDUCTIBLE. Please see E&O Insurance for more information on DEDUCTIBLES.