Other Insurance: Protection for Claims That Our Policy Does Not Cover

Cover Pages: A guide to insurance for private practitioners summarizes the risks that you face as a practitioner and as a business person and the insurance that’s either provided through the Policy (Parts A, B and C) or available for purchase on the private market.  My Insurance Policy: Questions and Answers explains the Part A coverage in more detail. You will want to talk to your broker about buying additional insurance to protect yourself from the risk of claims that exceed the policy limits or are not covered. Information about protection for claims that our policy does not cover is below. Information about protection for claims that exceed $1 million is available here.

You may be at risk of claims that are not covered. Familiarize yourself with risks that we do not insure, and the steps that you can take to reduce and protect yourself from them. The information, tips and links in My Insurance Policy: Questions and Answers and Cover Pages will help you get started. And if you need insurance, buy it. Policies have been developed by commercial underwriters to protect the firm and its members for various risks that we do not insure, and help if you do get caught. For instance, crime or fidelity insurance provides coverage for employee fraud or theft. It can also include other coverages that will respond if you or your bank accounts are the target of a fraudster. For example:

  • Social engineering fraud coverage protects you if, for instance, a fraudster tricks you into transferring trust funds to them by pretending to be a legitimate client or third party. One BC law firm targeted by this fraud re-directed sales proceeds that it was holding in trust for a real estate client on revised instructions from someone that the firm believed was the client. Before the firm wired the funds to the client, it received an email, purportedly from the client, directing the funds to be wired to a different account. In this case, the email address used by the fraudster was identical to that used by the client, except for one letter. The funds were sent, but apparently to the fraudster’s account. (Some protection for social engineering frauds, including the “bad cheque” scam, is also provided to you through Part C of the Policy.)
  • Funds transfer fraud coverage can assist if a hacker plants a virus in your system that gives the hacker fraudulent access to your online banking.

Cyber liability insurance can respond to a loss of data or a data breach, whether the result of a malicious hacker or simply because you left your laptop at Starbucks. Data breaches can result in both first party (e.g., costs related to notification, cyber-extortion and business interruption) and third party (e.g., claims for damages arising from stolen data or confidential information) losses. Cyber liability insurance can respond to both, and may include access to data breach consultants and other experts to assist if your firm suffers a breach.

There are other commercial products available for different risks, and the existing insurance continues to evolve to respond to new risks in doing business. Excess insurance can also "drop down" and respond to risks that our policy does not cover, usually subject to a deductible or self-insured retention. You can also buy other insurance policies that have been developed by commercial underwriters to protect the firm and its members for risks that we do not insure. There are different insurance options available and the terms of cover, including deductible amounts, may vary between insurers and brokers. Talk to one or more brokers to learn what is best for you and your firm.

Learn about excess insurance and how to protect yourself from claims that exceed $1 million

A list of excess and other commercial insurance brokers is available here