What is the Voluntary Excess Program?
Each CLIA subscriber law society provides its members with a mandatory liability insurance program of $1,000,000 per occurrence, $2,000,000 in the annual aggregate. In addition to this basic coverage, CLIA offers a Voluntary Excess Program to lawyers and law firms through the law societies of Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, Saskatchewan and Yukon. The Voluntary Excess Program offers limits ranging from $1,000,000 to $9,000,000 in excess of the underlying mandatory limit.
For further information about the Voluntary Excess Program, or to obtain a quote for coverage, contact your law society’s professional liability insurance department.
How does this program compare with traditional insurance?
The rates of commercial/traditional insurers fluctuate dramatically with market conditions. Rates must be set high enough to cover all claims, commissions and a profit and they may exit the market if profitability deteriorates.
The CLIA program was created by lawyers for lawyers. It is not-for-profit. When program income exceeds expenses, that “profit” is shared among the insureds by subsidizing the rates. The program has been continually operating for over 20 years, and with that experience has come expertise in setting rates reflective of the experience of Canadian Lawyers, handling claims and paying losses. This program is here to stay in good times and bad.