The Policy overview

The BC Lawyers’ Compulsory Professional Liability Indemnification Policy is issued by the Law Society through its wholly-owned subsidiary, the LSBC Captive Insurance Company Ltd. The Lawyers Indemnity Fund manages the policy which provides the following coverage:

• Part A: Professional Liability (errors & omissions) protects lawyers if they are liable for negligence and ensure that clients receive the compensation to which they are entitled. Every BC lawyer in private practice must pay the annual insurance fee ($1,800 plus tax, 50% discount for part-time practitioners) unless exempt. Part A limits of $1 million per error and $2 million in the annual aggregate, subject to a deductible of $5,000 or $10,000.
• Part B: Trust Protection for dishonest appropriation ensures that innocent members of the public do not suffer a financial loss through theft by a BC lawyer. The coverage is provided to lawyers even if you do not pay the annual indemnity fee. Part B offers an annual aggregate limit, profession-wide, of $17.5 million. Each claimant may recover up to $300,000 per claim. If the claim arises out of the lawyer's inter-jurisdictional practice, different limits apply. Lawyers practising temporarily pursuant to the national mobility regime are required to have defalcation coverage from a Canadian governing body that extends to the lawyer’s practice in the reciprocating jurisdiction. Part B of the policy satisfies that requirement.
• Part C: Trust Shortage Liability arising from social engineering fraud or reliance on fraudulent certified cheques provides some protection for lawyers if they fall victim to the 'bad cheque' or other 'social engineering' scams, helping ensure that clients do not suffer a financial loss of funds placed in trust with a lawyer. Part C provides a sublimit of $500,000 per claim, and per lawyer and firm annually, a profession-wide annual aggregate of $2 million, and a deductible of 35% of the client trust fund shortage (reduced by the amount of any overdraft). Coverage is contingent upon compliance with the Law Society’s client identification and verification rules.

Information about the Indemnification Program is not intended to be exhaustive or definitive, and is for your guidance only. The policy wording governs.