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Innocent Party Coverage

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Mandatory Innocent Party Coverage

Innocent Party coverage protects members of the public – and you – against the dishonest, fraudulent, criminal, or malicious acts or omissions of present or former partners, associates, employed lawyers and firm employees.

It is required for all lawyers practising in association, partnership (including general, multi-discipline and/or combined licensee partnerships and LLP partnerships) or a law corporation with more than one lawyer.

The premium is $125 per insured lawyer per policy period.

The coverage sublimit is $250,000 per claim/in the aggregate applicable to claim expenses, indemnity payments and/or costs of repairs.

This $250,000 sublimit coverage is provided within the primary insurance program coverage limits, and not in addition to the $1 million/$2 million coverage in place under the mandatory insurance program. You may wish to consider buying up the sublimit (see below).

Innocent Party Sublimit Buy-Up (for lawyers practising in associations, partnerships and with others in a law corporation)

One claim with substantial defence costs would quickly erode the $250,000 per claim/in the aggregate available under the mandatory Innocent Party coverage.

Optional Innocent Party Sublimit Buy-Up is available in these amounts:

  • $500,000 per claim/$500,000 in the aggregate
  • $1 million per claim/$1 million in the aggregate

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

This optional coverage is available for lawyers practising in association and lawyers [and paralegal partner(s) or shareholder(s)] 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 employees.

All lawyers and paralegal partners or shareholders in a law partnership (including general, multi-discipline partnership and/or combined licensee partnerships and LLP partnerships) or law corporations must select the same Innocent Party sublimit coverage.

Optional Innocent Party Coverage (for lawyers practising alone)

Optional Innocent Party coverage is a tool that allows you to assure clients that they are protected against the fraudulent, malicious, criminal or dishonest acts or omissions of lawyers. For example, you may need to assure clients that their funds are secure while in your possession or control. Or financial institutions may require insurance protection to recognize escrow closings.

Protect yourself against claims arising out of past partnerships and associations

Even as a sole practitioner, you continue to have vicarious exposure for the acts or omissions of partners, associates, employed lawyers or firm employees with whom you once practised. As a sole practitioner you are not required to carry mandatory Innocent Party coverage and are not protected against their dishonest, fraudulent, malicious or criminal acts or omissions. Optional Innocent Party coverage addresses this need.

This coverage may also be useful if, from time to time, other lawyers assist you in your practice during absences or vacations.

Optional Innocent Party Sublimit Buy-Up is available in these amounts:

  • $250,000 per claim/$250,000 in the aggregate
  • $500,000 per claim/$500,000 in the aggregate
  • $1 million per claim/$1 million in the aggregate

Sublimits are applicable to expenses, indemnity payments and/or costs of repairs together. Accounts are individually underwritten and may be subject to risk-based adjustment after review of the completed application form. Premium and other terms of insurance are ordinarily provided within 60 days after receipt of the completed application form.

To apply complete the Innocent Party Sublimit Buy-Up Application.


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