Voluntary Excess Insurance: Need and Availability
CLIA provides long-term professional liability insurance solutions for the legal profession in many Canadian jurisdictions. Lawyers in a CLIA Subscribing jurisdictions have Mandatory Errors and Omissions (E & O) insurance with a limit of $1M per claim and a $2M annual aggregate limit; and
Additional or excess insurance is also available through CLIA’s Voluntary Excess Program (VEP). Excess insurance is optional coverage that law firms can purchase as additional protection beyond the coverage required by the Law Society. The VEP offers the flexibility of additional coverage limits, extending up to $35M per claim, with an annual aggregate limit of $35M. Coverage options under the VEP include limits of $1M, $2M, $3M, $4M, $6.5M, $9M, $14M, $19M, $24M, $29M, and $34M, in excess of a $1M base.
We have created several FAQs to help you determine whether excess coverage is right for you:
Q: What factors should I consider when choosing coverage?
A: Consider these factors:
Transaction types and potential client impact
Size and frequency of large transactions
Coverage adequacy for former associates or partners
Potential growth of liability over time
Q: Is excess insurance only for high-risk areas or large firms?
A: No. Any legal work can result in large claims, regardless of firm size. Even routine matters, like drafting a will in a rural area, can result in claims exceeding $1 million. Excess coverage is available and can benefit lawyers in all areas of practice. However, for family law, real estate law, and wills and estates law, rising real estate and personal property values can mean higher potential losses from a single mistake.
Q: Why might my need for coverage increase over time?
A: The need for coverage may increase over time because:
More closed files can result in an increased possibility of a past error;
The firm may increase the number or complexity of files they take on;
The firm may have expanded int other practice areas; or
The clients’ net worth may increase and thereby increase the firm’s financial risk.
Q: Is excess liability insurance available for Alberta lawyers?
A: Yes. The Alberta Lawyers Indemnity Association (ALIA) administers a mandatory liability insurance program for Alberta lawyers, however, CLIA offers excess liability coverage for Alberta lawyers.
Q: Why choose CLIA for excess coverage?
A: Key benefits include:
Low investment for added security
Convenience
Experienced service
Seamless claims handling
High customer satisfaction
Referral program incentives
Ready to apply? The online application to apply for excess Insurance products can be completed any time after May 5th by going to the Excess insurance section of the CLIA website.
Before Applying, collect the following:
Details on disciplinary proceedings or disbarments involving firm lawyers.
Claims reported in the last 12 months (for renewals) or last five years (for new applications).
Knowledge of potential claim circumstances not yet reported.
For cyber coverage applications, firms must meet certain eligibility requirements. Some of the questions in the application form may require the assistance of your IT department. Contact cliacyber@ar-services.ca to receive the questions in advance if needed.
Existing Customers
The renewal period remains open until the end of June each year.
Pricing may vary annually—request a quote before applying.
Sign in to your account to access the pre-populated application form. Please update any information as needed.
New Customers
Submit applications until the end of July. Applications submitted after this period will be prorated (note that cyber coverage cannot be prorated).
Request a quote before applying.
Create an account to access the application form when you're ready.
Visit the Excess Insurance section of the CLIA website to get a quote and apply.
Need More Information? To learn more about our excess coverages please check out our helpful resources on our website, including FAQs on the following topics:
Explaining Excess Insurance
Need & Availability
Retirement & Claims Continuity
Limits & Coverage Scope
Changes to Firm or Coverage
Application/Renewal Process
If you have any questions, please contact us at service@clia.ca.