The BC Lawyers Compulsory Professional Liability Indemnification Policy is issued by the Law Society through its wholly-owned subsidiary, the BC Lawyers Indemnity Association. 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 are $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 (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 they are exempt and therefore 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 (social engineering fraud or reliance on fraudulent certified cheques) provides some protection for lawyers if they fall victim to a 'bad cheque' or other 'social engineering' scam, helping ensure that clients do not suffer a financial loss of funds placed in trust with a lawyer. Part C provides a limit of $500,000 per claim, lawyer, and firm annually, and has a profession-wide annual aggregate of $2 million. The deductible is 35% unless a secondary verification has been made, in which case the deductible is 15%. Coverage is contingent upon compliance with the Law Society’s client identification and verification rules.