Last update: Sept. 28, 2017
Media Release archive
LAWPRO holds line on insurance premiums
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Toronto, ON: September 25, 2003: Lawyers will be paying a base premium of $2,500 per lawyer for their professional liability insurance coverage in 2004, with some lawyers paying as little as $1,113, depending on the coverage options they select, their practice areas and years in practice. This is unchanged from 2003, despite difficult investment and commercial insurance markets.
Since assuming responsibility for the administration of the insurance program in 1995, Lawyers' Professional Indemnity Company (LAWPRO) has consistently reduced rates from a high of $5,600 in 1995 to the current $2,500 base premium.
With interest rates at historic lows, investment returns will not be available to significantly subsidize premiums in 2004. As well, the professional liability marketplace continues to experience reduced capacity: Double and even triple digit premium increases for liability coverage have been reported for some commercial programs.
"It is in tight markets such as these that LAWPRO really comes into its own and provides value to the profession. We can provide a stabilizing influence without compromising a principal goal: to provide lawyers with a cost-effective program in which insurance premiums reflect the risk associated with law practice. Moreover, our strong financial position going into this hard market allows us to retain 100 per cent of the premiums and losses in the core program ourselves," said Michelle Strom, LAWPRO president & CEO.
LAWPRO has also announced a number of modifications to the coverage provided under the insurance policy to address specific exposure issues:
As well, the $50 per transaction civil litigation transaction levy surcharge has been modified and will no longer apply to divorces and adoption proceedings which are not opposed on any issue.
LAWPRO also confirmed its commitment to expand its Continuing Legal Education (CLE) premium credit program, which entitles lawyers who have participated in LAWPRO-approved CLE programs to a $50 per program credit which is applied to their insurance premium (to a maximum credit of $100 per lawyer). An analysis of lawyers' loss experience indicates that those who participated in approved CLE programs have fewer claims on average than those who do not. "It appears that focused CLE can favourably influence claims frequency, and we intend to work closely with all segments of the Bar to expand the roster of programs approved for this credit," Ms. Strom said.
Lawyers' Professional Indemnity Company (LAWPRO) is a wholly Canadian-owned insurer providing a diverse range of insurance-related programs, services, and resources, including title insurance, to support the legal community in numerous jurisdictions across Canada.
On or about October 2, 2017