Professional Indemnity Insurance for Attorneys

Shackleton Risk provides Top Up Professional Indemnity Insurance to all our attorney clients.

Legal practices benefit from a primary layer of professional indemnity coverage through the Legal Practitioners Indemnity Fund (“LPIIF”). This coverage, which is complimentary, is provided according to the terms outlined in the LPIIF’s Master Policy and applies universally to insured attorneys. The policy shields attorneys (and their staff) against claims stemming from professional conduct, with the coverage amount varying between R1,562,500 and R3,125,000 (limit of indemnity) depending on the number of partners/directors in the firm at the time the cause of action arose.

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) themselves, 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.

Shackleton Risk offers Top-up cover tailored to the amount chosen by the insured, with no excess.

Coverage extends to Professional Indemnity, Fidelity Guarantee, and Misappropriation of Trust Funds, each of which is detailed below:

Professional indemnity insurance safeguards attorneys against legal liability for compensating any client (including claimant's costs, fees, and expenses) for any negligent act, error, or omission occurring in the course of their professional duties.

In addition, Shackleton Risk offers various extensions to the Top-up PI section of the policy, including:

  • LPIIF Excess Infill
  • Claims preparation costs
  • Defamation
  • Defense Costs for appearances before statutory bodies
  • Investment Advice
  • Liability following Employee Dishonesty
  • Loss of Documents
  • Sub-contractors / Correspondents

Shackleton Risk can arrange coverage for Impersonation Fraud through its network of insurers.

For further details on extensions or Impersonation Fraud Cover, please contact your broker.


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.