Innocent Party Sublimit Buy-Up (for associations, partnerships and LAW CORPORATIONS)

Innocent Party Coverage protects members of the public - and thereby you - against the dishonest, fraudulent, criminal, or malicious acts or omissions of present or former partners, associates, employed LAWYERS and firm EMPLOYEE(S). The increased incidence of fraud-related claims also has heightened awareness of the benefits of Innocent Party Coverage.

Optional for associations and LAWYERS practising in partnerships and LAW CORPORATIONS who want to:

• increase Innocent Party sublimit coverage limits beyond the mandatory Innocent Party coverage limits of $250,000 per claim/in the aggregate;
• ensure there is no gap in coverage between their Mandatory Innocent Party Coverage ($250,000 per claim/in the aggregate) and the $1 million per claim/$2 million aggregate coverage level at which excess insurance would apply (if purchased); and/or
• better protect their clients (and themselves) against the dishonest, fraudulent, criminal, or malicious acts or omissions of present or former partners, associates, employed LAWYERS and firm EMPLOYEE(S).

All LAWYERS in a LAW PARTNERSHIP (including general, MDP and LLP partnerships) or LAW CORPORATION must select the same Innocent Party Sublimit Coverage.

LLPs and the need to increase Innocent Party Coverage
LAWYERS in Limited Liability Partnerships (LLPs) may want to consider increasing Innocent Party Coverage sublimits beyond those provided by their Mandatory Innocent Party Coverage.

It is important to realize that the limited liability protection afforded to partners in the past has been restricted to those relating to negligent acts or omissions. Although this is changing, as a partner in an LLP you remain fully exposed to liability for the wrongful acts or omissions of another partner or an employee of the partnership not under your direct supervision if the act or omission was criminal or constituted fraud, even if there was no criminal act or omission, or if you knew of the act or omission and did not take the actions that a reasonable person would have taken to prevent it. Innocent Party Coverage helps fill this gap, as well as offering protection against exposures associated with partners and associates prior to the creation of the LLP.

Note:
LAWYERS acting as LOCUM are required to carry at least the same amount of Innocent Party protection as is carried by the LAWYER(S) in the contracting firm that has hired them. It is strongly recommended that LAWYERS acting as LOCUM as well as LAWYERS in the contracting firm purchase the full amount of Optional Innocent Party coverage available.

Sublimits are applicable to expenses, indemnity payments and/or costs of repairs together.

As well, this sublimit applies to claims reported under the Real Estate Practice Coverage option, that is to be required of all LAWYERS practising REAL ESTATE LAW in Ontario in 2012, since the sublimit of liability for that coverage is to be included within the Innocent Party Coverage sublimit. For more details see Real Estate Practice Coverage Option or contact the LAWPRO Customer Service Department.

• you are increasing your Innocent Party Sublimit coverage limits for the first time; OR
• you want to increase (or decrease) your current Innocent Party Buy-up option.

• Online form
• PDF form
  PDF form (en français)