Professional Liability

Lawyer’s Professional Liability Insurance

The Law Society of the Northwest Territories requires all practicing lawyers to carry professional liability insurance for errors and omissions.

The Law Society of the Northwest Territories is a member of the Canadian Lawyers Insurance Association (CLIA), a reciprocal insurance exchange. Through CLIA, the Society enters into a group policy providing professional liability insurance for all practicing members.

Certain lawyers are exempt from insurance, including lawyers employed exclusively by the Government of the Northwest Territories (other than Legal Aid NWT), certain departments of the Federal Government, and non-resident members of the Law Society of the Northwest Territories who are licensed and insured in another jurisdiction.

The mandatory professional liability insurance policy provides coverage of up to $1 million per occurrence with a $2 million annual aggregate per insured.

It is a condition of practice that members pay the annual insurance levy fee unless you qualify for an exemption. Fees are set by CLIA annually and members may choose to pay the fees all at once or in two installments. 

You may wish to purchase excess insurance. More information about CLIA’s voluntary excess insurance can be found here.

FILING A CLAIM REPORT

It is both a condition of the policy and an ethical obligation that insured lawyers report to CLIA as soon as possible after learning of a claim or becoming aware of circumstances that might give rise to a claim.

You must also report to the Law Society of the Northwest Territories.

In the Northwest Territories all claims for errors and omissions are handled through the Canadian Lawyers Insurance Association (CLIA).

To report a potential claim, use CLIA’s Insurance Claim Report Form and send to [email protected]

A copy of your report must also be filed with the Law Society of the Northwest Territories.

NOTE: If you carry excess insurance coverage over the $1,000,000 mandatory coverage, you should consult the excess coverage policy regarding the required procedures. A report to CLIA may not satisfy the reporting requirements of the excess coverage policy unless that excess coverage is also through CLIA.

ADVISING THE CLIENT

If they are not aware already, it is important to advise your client of the situation. Explain the problem to the client in person and in the presence of a witness. Identify in what way you may have harmed him or her and why. Stick to the facts and their significance. Advise that the client get independent legal advice about the situation, and confirm this advice in writing.

OPENING A FILE

You should open a separate file for correspondence on this subject with CLIA or the solicitor appointed to act for you. If you turn over papers to your former client or his/her solicitor, keep copies of ALL such documents for the use of CLIA or the solicitor appointed to act for you.