Indemnity fee unchanged, surcharge increases for first time in 40 years

Benchers have approved keeping the 2026 indemnity fee at $1,800 for full-time lawyers and $900 for part-time lawyers for the ninth year in a row. The deductible for a first paid claim remains at $5,000, unchanged since the program began in 1986.

In 2024, the Lawyers Indemnity Fund continued to receive a record number of claim reports — a trend that has carried into 2025. To ensure greater fairness between lawyers who remain claims-free and those whose claims result in an indemnity payment, the Benchers have approved an adjustment to the indemnity surcharge. For the first time in 40 years, the surcharge will increase from $1,000 to $2,000 for claims reported on or after January 1, 2026. The surcharge applies only when a settlement, judgment or repair cost exceeds the deductible resulting in an indemnity payment by LIF. The surcharge is payable each year for five years. It does not apply to defence costs.

For more details, read the full budget overview.