About Professional Indemnity Insurance
All legal practitioners practising as principals of a law practice (unsupervised) in New South Wales are required to hold or be covered by Professional Indemnity Insurance (PII) pursuant to section 45 of the Legal Profession Uniform Law (NSW). Insurable solicitors in the Australian Capital Territory are required to hold an approved professional indemnity policy under section 311 of the Legal Profession Act 2006 (ACT).
Lawcover provides approved professional indemnity insurance policies to law practices in NSW and the ACT. For 2017/18, the Lawcover PII policy provides law practices with cover up to $2 million each claim, including claimant’s costs & defence costs. Lawcover also provides optional Top Up insurance, over and above the required primary $2 million limit, to many law practices in NSW and nationally.
Extent of Cover
Lawcover issues two policies for practitioners and law practices:
- A PII Policy issued to current law practices and practitioners in private practice;
- A Run Off PII Policy issued to the Law Society of NSW and the ACT Law Society, which covers law practices that have ceased and not been succeeded by another practice.
The PII policy sets out the extent of the civil liability cover provided to both the current law practice and its current and former principals and employees, as well as those of a prior practice of the law practice. The terms, conditions and exclusions are written in plain English.
The PII policy responds to civil liability for claims that arise from legal services provided by the law practice that are first made during the period of insurance, subject to the terms, conditions and exclusions of the policy.
Features of the Cover
- Broad civil liability cover for practitioners in private legal practice which protects consumers of legal services.
- Cover available to all insurable law practices.
- Indemnity of up to $2 million each claim, including defence costs and claimant’s costs (excluding the applicable excess).
- No provision for avoidance or cancellation for reasons such as non-disclosure.
- Run off cover for former principals and employees.
- Run off cover for law practices that have previously ceased.
The Run Off policy covers a practitioner or law practice (including a prior practice) that has ceased legal practice and that is not a prior practice of any other practice. This cover is only extended to practitioners and law practices that, at the time of ceasing legal practice, were insured under any Certificate of Insurance arranged by Lawcover or Insurance policy underwritten by Lawcover Insurance.
Lawcover can only provide information with respect to the current underwriting year, and this information may change in future years.
Primary Professional Indemnity Insurance
About Professional Indemnity InsuranceInformation for New Law PracticesHow We Calculate Your PremiumPrior Practices – Why They Are Relevant To Your Professional Indemnity InsuranceLaw Practice Dissolutions – How They Impact On PremiumsDue Diligence Guide for PrincipalsConsultant – Employee Or Independent Contractor?Frequently Asked QuestionsInsurance Policies, Forms & Brochures