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How We Calculate Your Premium

How We Calculate Your Premium

Calculating your premium involves four steps:

1. Law practice’s gross fee income

In most cases, a law practice’s gross fee income (GFI) for the last full financial year is used to calculate its base premium for the following year (other than for newly established law practices). Your base premium reflects the overall claims experience for law practices within your GFI range, as determined by Lawcover’s statistics.

2. Law practice’s claims experience

Your base premium is then adjusted up or down depending on your law practice’s (including any prior practices) claims history.

3. Law practice’s risk management

Your base premium may be adjusted down depending on your law practice’s principals’ satisfactory attendance at Lawcover’s Risk Management Education Program (RMEP) or your law practice’s LAW 9000 – Legal Best Practice or ISO 9001 – Quality Management Systems risk management certification.

4. Choice of excess

Most law practices will have the option to select a higher excess instead of the standard excess, in return for a premium reduction.

Risk Management Education Program – 2019/20

The current premium discounts for participation in Lawcover’s Risk Management Education Program (RMEP) are set out in the table below.

For full details of the new RMEP program and discounts please click here.

RMEP Premium Discount
3 x Principals Workshops7.5%
5 x Principals Workshops10%

Other premium discounts – 2019/20

CategoryDiscountConditions
LAW 9000 or ISO 9001 12.5%Law practices are entitled to this premium discount if they are certified to the requisite standard by 30 June 2019. A copy of their current certificate must be provided, confirming that certification will remain current for the following policy year. Please note that the LAW 9000 or ISO 9001 discounts are NOT cumulative with the RMEP discounts.
Criminal Law20%For law practices whose Gross Fee Income for the prior year is exclusively derived from

  • Matters which, if litigated, would be litigated in the criminal jurisdiction of any court
  • Appellate work that flows from such litigation
  • Any other advice or litigation that directly flows from such litigation
  • Matters that are the subject of Commissions of Inquiry which may result in a recommendation for criminal prosecution

Please Note:

  • The combined maximum premium discount of any type achievable for any law practice is 30%
  • This includes any risk management premium discount, no claims discount and criminal law discount that might be applicable
  • Some law practices pay the minimum premium based on low GFI. For 2019/20, the minimum premium is $220.00, plus GST and stamp duty (if applicable)
  • It is important to note that the premium discounts referred to on this page do not apply where a law practice pays the minimum premium
  • Where a law practice pays more than the minimum premium, but the application of a premium discount would result in a premium of less than the minimum, the law practice will only be entitled to a discount which generates the minimum premium