Deductibles

For 2027 policies, the deductible is due when the Statement of Defence or other responding material is filed. This approach simplifies and streamlines the deductible payment process.

If a claim is resolved before a Statement of Defence or other responding material is filed, the deductible applies to any indemnity payment or costs of repairs incurred. If the indemnity payment and/or costs of repairs are less than the applicable deductible, the lawyer is required to pay only the lesser amount.

Policies issued prior to 2027

For policies issued prior to 2027, deductibles are applied to claim expenses, indemnity payments and/or costs of repairs as follows:

• 50% of the deductible amount is due for investigation and defence expenses when the Statement of Defence or other responding material is filed.
• The remaining 50% is due for investigation and defence expenses when examination for discovery begins or, if there is no examination for discovery, once a pre-trial conference is held.
• Any outstanding deductible amount is applied to judgments, settlements and/or costs of repairs when the expenditure is due.

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).

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.

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.

For 2027, LAWPRO offers the following deductible options:

Deductible	Premium adjustment (based on base premium)
$Nil	15% increase
$2,500	7.5% increase
$5,000	No adjustment
$10,000	7.5% decrease
$25,000	12.5% decrease

All deductible options apply to claim expenses and indemnity payments together. Indemnity-only deductible options are no longer available.

Additional eligibility requirements apply to certain deductible options.

Yes. A higher or additional deductible may apply in certain circumstances, including:

• A doubled deductible where a claim arises from acting for clients with an apparent or alleged conflict of interest.
• An additional $10,000 deductible in certain circumstances involving administrative dismissals.
• A $5,000 deductible for claims involving counterfeit certified cheques or bank drafts where the lawyer selected a $Nil or $2,500 deductible.
• A $500 indemnity-only deductible for certain real estate claims where the lawyer selected a $Nil deductible and no real estate transaction levy was payable.

If more than one special deductible applies, the Policy sets out which deductible is payable.

No. Claims or losses covered under Endorsement No. 14 are subject to a separate $5,000 deductible, regardless of the deductible selected for professional liability coverage.

See our new FAQs for more information about the Cyber Coverage Sublimit.

The insured lawyer is generally responsible for the deductible, although the law firm may also be responsible in some circumstances. Where a claim involves related errors by two or more insured lawyers, LAWPRO may designate the lawyer responsible for the deductible in accordance with the Policy. The Policy also sets out a process for resolving certain disputes about who is responsible for payment.