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Deductibles

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How much of the deductible is used and at what stage in the claim?

Deductibles are applied to claim expenses, indemnity payments and/or costs of repairs:

  • 50% of the deductible amount for investigation and defence expenses when the Statement of Defence or responding material is filed
  • 50% of the damages amount for investigation and defence expenses due or incurred at the time of commencement, when examination begins, or once a pre-trial conference is held
  • Any outstanding deductible amount left is applied to judgments, settlements, and/or costs of repairs when the expenditure is due.

For example: a lawyer with the standard $5,000 deductible is required to pay $2,500 when a Statement of Defence or other 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.

If the claim is settled prior to a Statement of Defence or other responding material being filed, the deductible applies to any indemnity payment or costs of repairs incurred only. If, in this scenario, the indemnity and/or repair is less than the $5,000 deductible, the lawyer is required to pay this lesser amount.

How do I change my deductible amount?

Use an Application for Mid-Term Change form. Upon receipt of your completed form, we will change your policy coverage and send you a written confirmation (as well as a revised invoice if applicable).

Why don’t I qualify for the $Nil DEDUCTIBLE?

Lawyers and paralegal partners practising in a partnership (general, multi-discipline and/or combined licensee partnerships, 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 within 5 years prior to the policy effective date and all lawyers (and paralegal partners) in the partnership must meet this criterion for the members of the firm to qualify for the $Nil deductible.

Will my deductible be called on if a claim is made against me arising out of a mentoring relationship?

LAWPRO will waive the deductible and Claims History Levy Surcharge on a claim made against a lawyer mentor arising out of a mentoring relationship, provided that:

  • the mentor and mentee agreed to enter into a formal mentoring relationship, as evidenced by a written document of some kind;
  • the mentor had no contact with the mentee’s client that would create a solicitor/client relationship; and
  • the mentee understood that the mentor was responsible for individually and independently being satisfied of the soundness of any suggestions, recommendations or advice-like comments made by the mentor.

The written document evidencing the relationship does not have to be a formal signed mentoring agreement. It can be as simple as an e-mail acknowledging the relationship and the three terms listed above. The Managing a mentoring relationship booklet contains a helpful precedent of a simple mentoring agreement.


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