Retired Lawyers, Emeritus Lawyers, Estate Trustees, Judges and Other Lawyers No Longer In Private Practice
By-Law 6 of the Law Society Act requires that all Ontario lawyers who practise in Ontario pay the insurance premium annually, to ensure they have malpractice coverage in place. However, certain categories of lawyers can apply to exempt themselves from paying this premium. These include lawyers who are fully retired from the practice of law, estate trustees, emeritus lawyers, judges, and others no longer practising law. Learn more about exemption eligibility.
What coverage do I have?
You have a maximum of $250,000 per claim/in the aggregate Run-off coverage for claims brought against you.
What is the premium?
There is no premium for lawyers exempt under this category.
How do I apply?
File an Application for Exemption.
If you qualify for exemption but wish to increase your coverage limits
You can enhance your insurance coverage in several ways:
- Increased Run-Off coverage protection: To increase your Run-Off coverage protection and/or purchase expanded coverage for certain services yet to be performed as estate trustee, trustee for inter vivos trust, or attorney for property
- Excess insurance: For additional protection above the $1 million per claim/$2 million aggregate coverage
- Standard coverage: $1 million per claim/$2 million aggregate coverage
It is important to note that there is no coverage for professional services provided during any period of exemption. To qualify for an exemption, you cannot engage in the practice of law in Ontario, subject to the exceptions below.
If you provide professional services to others such as family, friends or associates, even if on a pro bono basis, you are in fact considered to be providing professional services in private practice. You would not qualify for an exemption, and would be required to pay the LAWPRO insurance premium.
As well, in situations where you are retired as a lawyer but are acting as a mediator, arbitrator, immigration consultant or are otherwise providing services that are often but not exclusively provided by lawyers, it should be absolutely clear to clients and others that you are not providing these services as a lawyer. If you do provide these services in your capacity as a lawyer, you are considered to be providing professional services in private practice and must pay the insurance premium.
If, in retirement, you plan to act as estate trustee, trustee for inter vivos trust, or attorney for property, you will want to consider the practice implications discussed below in the section on lawyers acting as estate trustee.
Innocent Partner Coverage
As part of the $250,000 Run-Off Coverage you receive free of charge, you are provided with run-off protection against innocent partner claims.
This means that if claims are made against you once you leave private practice, for the dishonest, malicious, criminal or fraudulent acts of a former partner or associate, your Run-Off Coverage provides you with sublimit coverage of up to $250,000 per claim and in the aggregate for repair costs, claim expenses and indemnity payments. This is subject, however, to any erosion in this limit as a result of all other claims reported by you under the Run-Off Coverage.
Exceptions to the “no coverage for professional services” rule:
1. Pro bono services provided through an approved pro bono professional services program associated with Pro Bono Ontario.
You will be provided with the standard Run-Off Coverage of $250,000 per claim/in the aggregate for approved pro bono services, even though the services are provided while exempt.
You will not be required to pay any deductible amount for any claims relating solely to such professional services.
If you provide pro bono work for not-for-profit organizations (not associated with Pro Bono Ontario), you may continue to qualify for exemption. Learn more about providing pro bono services.
2. Certain services as estate trustee, trustee for inter vivos trust, or attorney for property
As you wind down your private law practice, it may be that you are named or act as estate trustee, trustee for inter vivos trust or attorney for property, even though the rest of your practice is being wound down or turned over to one or more lawyers who remain in practice.
If so, you still have certain obligations to the Law Society, even though you may not be required to pay the Law Society’s annual fee, including:
- having to declare to the Law Society such trusteeships or powers of attorney upon retirement (or change to a non-practising status); and
- having to file the appropriate exemption forms each year with LAWPRO to confirm that you continue to be exempt from the payment of insurance premium levies.
The criteria under which a retiring lawyer who continues to act as estate trustee, trustee for inter vivos trust or attorney for property, can apply for exemption from payment of insurance premiums and levies are fully set out in the exemption eligibility of the Application for Exemption.
This exemption is available to you, regardless of whether you are acting on a single trusteeship or power of attorney, or a number of trusteeships or powers of attorney.
However, this exemption may not apply to every instance in which you act as estate trustee, trustee for inter vivos trust, and/or attorney for property.
For example, your role must be residual work from your past practice in Ontario, which would not be the case where you have only been named in retirement.
As well, this exemption would not apply to any trusteeship or attorney for property, where you have been named or are acting in respect of a member of your own family. For this purpose, members of the lawyer’s own family means “related persons” as defined under section 251(2) of the Income Tax Act (Canada).
If these are the only types of occasions in which you have been named or act as estate trustee, trustee for inter vivos trust, or attorney for property in relation to your retirement, you would not elect exemption on the basis of eligibility rule (h). Instead, you would simply look to apply for exemption on the basis that you are not engaged in the practise of law in Ontario.
3. Certain mentoring services provided pursuant to LAWPRO-approved risk management protocols
4. Clinics funded by Legal Aid Ontario
Retired lawyers who are interested in volunteering in legal aid clinics may apply to exempt themselves, provided they meet the exemption criteria for lawyers working or volunteering in legal aid clinics, as described in the exemption eligibility.
Increased Run-Off Protection
This optional coverage is available for lawyers who have only standard Run-Off coverage and would like to increase their coverage protection.
Run-Off coverage protection can be increased to $500,000 or $1,000,000 on a 2 to 5 year basis. Innocent Partner Buy-Up (sublimit coverage within Run-Off Buy-Up coverage) can also be increased to those limits.
Increased Run-Off coverage protection is underwritten on an individual basis, depending on several factors including the number of years you practised, areas of law in which you practised, and how long it has been since you were in private practice.
To apply complete the application form.
First time applicants should apply at least 60 days before the coverage is to be in place. This is particularly important for lawyers leaving private practice, as you want to ensure the desired coverage limits are in effect on the day you actually leave private practice.
Coverage for certain services as estate trustee, trustee for inter vivos trust, or power of attorney
If you are exempt on the basis that you are named or act as estate trustee, trustee for inter vivos trust or attorney for property even though the rest of your practice is being wound down, you may wish to apply for and purchase protection for these services yet to be performed.
Although the standard $250,000 Run-Off coverage does not provide protection for these services, you may purchase expanded coverage for these services. This expanded protection may be included within the $250,000 Run-Off coverage limit, or increased Run-Off coverage limits outlined above. Through a deeming provision, services of this type that have yet to be performed may be included under the Run-Off coverage protection provided to you.
Once your additional limit term has expired, you can apply for further term policy coverage. If you choose not to re-apply, your coverage limits will return to the $250,000 per claim/aggregate limit, subject to any claims already reported while on exemption. This includes claims reported while any increased Run-Off coverage protection was in force, since your increased Run-Off coverage protection provides increased limit protection only, and does not replace the standard Run-Off coverage.