Business or personal interest claims

We will not pay a claim if:

  • the payment in any way personally benefits you, your family or your law firm; or
  • it is by or in any way connected to any commercial entity in which you, your family or your law firm colleagues, alone or together, in any way had effective management or control, or beneficial ownership greater than 10% at the time of the mistake. 

Learn more about how Exclusion 6 operates in relation to negligence claims and trusts. The summary also offers information about a due diligence process to disclose activities that may trigger the Exclusion, as well as a sample questionnaire.

Learn more about the optional Business Innocent Covered Party Endorsement that provides some protection for partners.

Policy:  Exclusions 6.1 and 6.2

Defamation

Sometimes, lawyers are sued for defamation while representing clients. The policy will pay for your defence, even if your conduct is alleged to be malicious. In the unlikely event that your conduct is found to be intentional or malicious, we will not pay any damages awarded against you.

Policy: Definition of "personal injury"; Part A: Indmenity Agreement 2.7; Exclusion 2. 

Dishonest or intentional acts

Actual or alleged intentional, criminal, dishonest, fraudulent or malicious acts are not covered. Sometimes, a negligence claim makes alternative allegations of dishonest or fraudulent acts. We defend those claims, but reserve our rights to not pay any settlement or judgement in the unlikely event such conduct is established. On rare occasion, the only claim advanced is one of dishonesty. The policy does not provide you with any defence or indemnity coverage for those claims. If your partners are unaware of the matter but face liability, we will defend and indemnify them. We are entitled to pursue you for any amounts we pay on their behalf.

Policy: Definition of "error"; Part A: Indmenity Agreement; Exclusions 1 and 2; Conditions 3.2 and 6.1

Injury or property damage

We will not pay a claim arising out of or in any way connected to:

  • any injury to, physical contact with, sickness, disease or death of any person, except for emotional distress or humiliation of a claimant directly resulting from an error; or
  • injury to or destruction of any tangible property, including the loss of use thereof.

Policy: Exclusion 3
 

Exclusions to Part A: Professional Liability for Errors & Omissions only:

Contractual liability

We will not pay a claim arising out of or in any way connected to any contractual liability (express or implied, including an indemnity) unless there would be tort liability in the absence of the contract and only to the extent damages arise solely from any tort liability. You may be asked to indemnify and hold harmless a client or other party against loss it incurs as a result of your actions. If the indemnity has no effect on our ability to defend any subsequent negligence claim against you, coverage for any such claim will likely not be lost by your agreement (unless you agree to indemnify a client for costs awarded against it in litigation). Separate from any coverage concerns, you may leave yourself exposed to other financial consequences to which the policy does not respond. You might also be asked by a client to agree to a means of resolving a negligence claim, or agree that the law of a certain jurisdiction will govern any subsequent dispute. Appreciate that such an agreement may interfere with our ability to defend you, jeopardizing coverage. So, before you sign on any dotted line, read through our information on Indemnities and Dispute Resolution Agreements.

Policy: Part A: Indmenity Agreement; Condition 5.3 ; Exclusion 13

Cyber and privacy liability

We will not pay a claim arising out of or in any way connected to:

  • Cyber crime: criminal activity including, but not limited to, social engineering fraud, business email compromise, identity theft, ransomware, or spoofing and phishing that either targets or uses a computer, a computer network or a networked device;
  • A data breach: an incident wherein information in your care, custody or control is stolen or taken without your knowledge and consent;
  • A network security breach: (a) the electronic receipt or transmission of a computer virus or other program via the internet or in any other manner that does or is intended to delete, distort, corrupt, manipulate, impair or gain or prevent access to: internet connections, networks or systems; computer programming; computer, telecommunication or other devices; or electronic data for uses other than those intended for authorized users of such devices, systems or networks; or (b) the failure or violation of the security of computer, telecommunication or other devices, systems, or networks; and
  • A privacy breach: any disclosure, howsoever arising, of information in your care, custody or control to an unauthorized person.

However, if you compromise your client’s legal position due to a privacy breach, the policy will respond.

Learn more about LIF’s cyber program: Your Cyber Coverage and coverage for these types of risk, and other coverage available from Brokers selling commercial insurance for law firms.

Policy: Part A: Indemnity Agreement; Exclusion 9 and 10