Professional Indemnity Insurance for Attorneys

Understanding LPIIF Limits and the Need for Additional Cover

Notably, the limit of indemnity is allocated to the firm (not each practitioner individually) on an annual aggregate basis. This means that the applicable limit of indemnity represents the maximum coverage the firm can access with the LPIIF for that particular year. The LPIIF insurance year spans from July 1st of one year to June 30th of the next, and it is the responsibility of attorneys to acquaint themselves with the contents of the LPIIF policy.

Given that the coverage levels through the LPIIF are relatively modest and are provided on an annual aggregate basis, should a claim exceed this primary layer of indemnity, the firm may be forced to cover the claim (or part thereof) itself, with potentially dire consequences. Therefore, it is wise to ensure that adequate levels of Top-up cover are in place, and Shackleton Risk stands ready to assist in this regard.

Why Top-Up Professional Indemnity Cover Is Important

Shackleton Risk arranges additional cover tailored to the amount selected by the insured, with no excess. Coverage includes Professional Indemnity, Fidelity Guarantee, and Misappropriation of Trust Funds - each outlined below.

Professional Indemnity Insurance for Attorneys safeguards legal professionals against liability for compensating any client (including the claimant's costs, fees, and expenses) due to any negligent act, error, or omission in the course of their professional duties.

Top-Up Cover Options Available

Shackleton Risk can assist in arranging top-up insurance with limits selected by the insured, with excess structures subject to insurer terms and policy wording.

Top-up cover may extend to the following sections, each subject to its own terms, conditions, and limits:

Professional Indemnity

Professional indemnity insurance for attorneys is designed to respond, subject to the policy wording, to civil liability arising from negligent acts, errors, or omissions committed in the course of professional legal services. This may include associated legal defence costs, where applicable.

Available Extensions to Top-Up Professional Indemnity

A range of extensions may be available to enhance the Top-up Professional Indemnity section of the policy, subject to insurer underwriting, applicable sub-limits, and policy terms. These may include:

• LPIIF Excess Infill

• Claims preparation costs

• Defamation

• Defence costs for appearances before statutory bodies

• Investment advice

• Liability following employee dishonesty

• Loss of documents

• Sub-contractors and correspondents

Impersonation Fraud Cover

In addition to top-up professional indemnity arrangements, Shackleton Risk can assist in arranging legal indemnity cover for impersonation fraud through its network of insurers, subject to underwriting approval and policy terms.

For further information regarding available extensions or impersonation fraud cover, please contact your broker for tailored advice.

Fidelity Guarantee

Fidelity Guarantee insurance provides indemnity to the insured against the loss of money or property resulting directly from acts of fraud, theft, or dishonesty committed by an employee during their employment, subject to the terms and conditions outlined in the policy.

Misappropriation of Trust Fund (MOTF)

Commonly referred to as MOTF, offers indemnification to a legal practice in the event that a client initiates a claim against the firm for theft perpetrated by a practicing practitioner, candidate attorney, or employee. This theft involves money or other property entrusted to an attorney, candidate attorney, or employee while carrying out legal duties, acting as an executor or administrator in a deceased person's estate, serving as a trustee in an insolvent estate, or in a similar capacity.

This coverage is available in three variations:

1. Blanket Basis: This allows the insured to cover all staff members within the practice
2. Named Positions Basis: This permits the insured to insure specific positions within the practice, such as the bookkeeping or finance department.
3. Named Persons Basis: This enables the insured to cover specific employees within the practice.

For more information please contact your local broker.