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Deductibles

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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 DAMAGES amount;
  • To judgments, settlements, and/or costs of repairs, to the extent of any outstanding DEDUCTIBLE amount, when the judgment, settlement and/or repair expenditure is due.

Thus, a LAWYER with the standard $5,000 DEDUCTIBLE applicable to CLAIM expenses, indemnity payments and/or repairs costs 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 issued, however, 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.

Certain types of CLAIMS, such as when a LAWYER acts for more than one person or organization having an apparent or alleged conflict of interest or if there has been an ADMINSTRATIVE DISMISSAL, will increase the DEDUCTIBLE amount. For more on this, please see Part IV, General Condition C (“DEDUCTIBLE”) in the current POLICY.

I am a recent hire and my employer requires that I elect a $10,000 DEDUCTIBLE for my practice coverage under the primary LSO program. 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. Upon receipt of your completed Application for Mid-Term Change form, we will change your POLICY coverage 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 PRACTISING LAWYERS in our LAW FIRM. I want to choose the $Nil DEDUCTIBLE, but have been told by LAWPRO that because one of the PRACTISING LAWYERS in my LAW FIRM has had a CLAIM made that resulted in an indemnity payment being made, I don’t qualify for the $Nil DEDUCTIBLE. 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 under the primary LSO program within 5 years prior to the POLICY effective date. All LAWYERS (and PARALEGAL PARTNERS) in the partnership must meet this criterion for the members of the firm to qualify for the $Nil DEDUCTIBLE.

I am a mentor. Will my DEDUCTIBLE be called on if a CLAIM is made against me arising out of my mentoring relationship?

LAWPRO will waive any DEDUCTIBLE and Claims History Levy Surcharge on any 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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