Excess liability coverage: Frill or necessity?
No one, no matter what area of law they practise, is immune to a claim. You also run the risk that the claims made against you in any one year could exceed the $1 million per claim/$2 million in the aggregate policy limits of the primary LAWPRO insurance program.
Excess Liability Insurance provides you with that additional layer of protection should defence and indemnity payments exceed the limits provided by the primary LAWPRO program.
LLPs and the need for Excess Liability Insurance
Practising in a Limited Liability Partnership (LLP) also has insurance implications. One of the requirements of an LLP is that the partners advise clients about the limited extent of their liability within the Limited Liability Partnership under the Partnerships Act. Lawyers in LLPs will want to be able to reassure clients that the firm – an LLP – carries substantial insurance protection.
Excess Insurance is one way for you to be able to provide that assurance and protect yourself against excess exposures – for your own professional services, for services provided by others under your direct supervision or control, for firm exposures predating the LLP arrangements, and for protection of the LLP firm assets.
Law Corporations and the need for Excess Liability Insurance
If you are practising in a Law Corporation, you will want to remember to insure for your full exposure, since the traditional protections associated with working in a corporate entity do not exist in a Law Corporation.
Locums and the need for Excess Liability Insurance
As a locum you are standing in for another lawyer to cover or run his/her law practice while away. LAWPRO’s optional Excess program automatically extends coverage to Locums and locum work under the Excess policy issued to the contracting firm. But not all excess insurers may do so.
Firms purchasing excess insurance from other insurers are strongly encouraged to obtain written confirmation from their excess insurer that the locum and contracting firm are both insureds under any excess policy issued, and that coverage is fully afforded in relation to locum work that has or may be done.