Innocent Party Coverage
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.
The coverage sublimit is $250,000 per claim/in the aggregate applicable to claim expenses, indemnity payments and/or costs of repairs together.
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
Optional for all lawyers and eligible paralegal licensees practising in association or partnership (including MDPs, LLPs, and lawyer/paralegal partnerships), law corporations (with more than one lawyer and/or paralegal shareholder) and sole practitioners practising with employed lawyers.
One claim with substantial defence costs would quickly erode the $250,000 per claim/in the aggregate available under the mandatory Innocent Party coverage.
Innocent Party Sublimit can be increased as follows:
- to $500,000 per claim/aggregate for an additional $75 per insured; or
- to $1 million per claim/aggregate for an additional $125 per insured
LAWPRO strongly recommends that lawyers and other insureds increase their innocent party coverage protection to the maximum sublimit offered, to provide comprehensive coverage and reduce the likelihood of gaps in coverage.
Sublimits are applicable to expenses, indemnity payments and/or costs of repairs together.
This optional coverage is available for lawyers 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.
To apply complete the Innocent Party Sublimit Buy-Up Application.