Employed and Dependent Contract Lawyers in the Private Sector*
Lawyers who are employed full-time in a non-law corporation and not engaged in the practice of law other than in the course of their employment are exempt from the requirement to purchase the Law Society’s professional liability insurance policy. Correspondingly, there is no coverage under the policy for claims arising out of these lawyers’ employment activities.
Lawyers who, though not employees, are “dependent” contractors, are still exempt, and there is no coverage available to these lawyers under the policy. In determining if a contract lawyer is properly characterized as a dependent contractor, the Insurer will consider various factors either alone, or in some combination. For example, does the lawyer:
- work under the supervision and control of the contracting party?
- provide services exclusively to the contracting party?
- receive a fixed sum as payment rather than bill the contracting party for services rendered?
- enjoy benefits similar to those extended to the contracting party’s employees?
- work from the contracting party’s premises?
- send correspondence on the letterhead of the contracting party?
- use equipment, supplies, and other resources of the contracting party?
Lawyers who are employed (including dependent contractors) may want to consider the risk of claims arising in respect of their employment activities. Lawyers seeking protection are likely able to acquire insurance in the private market. Other options for these lawyers may include adding themselves as insureds to any liability insurance policy held by the employer or obtaining an indemnity from the employer.
Any lawyer who would like the Insurer’s position as to whether the lawyer is considered a dependent or independent contractor for the purposes of the policy is invited to send a detailed description of the circumstances, in writing, to one of the advance ruling advisors, Surindar Nijjar at 604-605-5314 or snijjar@lsbc.org, Kate McLean at 604-605-5377 or kmclean@lsbc.org or
Margrett George at 604-443-5761 or mgeorge@lsbc.org.
*If you are a lawyer working for the government, a Crown corporation, union or society or not-for-profit organization that provides pro bono legal services to the public, please contact Member Services for information about exemptions and insurance.
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