Paralegal Insurance Ontario

Insurance for Paralegals in Ontario

As a paralegal, you play an essential role in the legal system that requires much knowledge and expertise in legal services. At the same time, your work puts you at risk for specific perils that could have a massive negative impact on your financial situation and your career—and chief among them is the risk of being sued for issues such as providing inaccurate advice, breach of contract, professional negligence or conflict of interest. But there are other risks to consider, from different types of liability exposure to the possibility of property destruction due to factors like fire and natural disasters.

The right paralegal insurance is the solution to transferring and mitigating risks effectively should they occur. Ontario law professionals can rely on the experienced brokers at Morison Insurance to find the best coverage available for paralegals. With our help, you can get a paralegal insurance quote and have the peace of mind that comes with knowing you won't be forced to pay out of pocket for eye-watering costs if you are sued or subjected to another insured peril.

What is Paralegal Insurance?

It's no secret that it can take lots of money to resolve a lawsuit or replace and repair business property damaged or destroyed by severe weather, fire, flood, or theft. Paralegal insurance in Ontario is a package of policies designed to address the perils you will most likely encounter throughout your professional career and provide the insurance compensation necessary to avoid paying out of pocket for those costs.

Suppose you are sued and have to defend yourself in court. In that case, you need the proper liability coverage in your paralegal insurance package to deal with the expenses that come along with having legal action brought against you. A wide variety of liability coverages are available, and while professional liability is critical for paralegal insurance, Ontario legal professionals also need other types of liability insurance. Commercial property insurance is also typically necessary, although their employer's property and contents insurance may cover paralegals who work in a lawyer's office or a law firm.

What Are the Mandatory Requirements for Paralegal Insurance in Ontario?

Most types of business insurance are not strictly mandatory for most professions, but of course, there are exceptions to every rule. As you likely already know, licensed paralegals have mandatory insurance requirements for their professional liability insurance coverage that have been put in place by the Law Society of Ontario. Unlike some professional associations, the Law Society of Ontario does not require that professional liability coverage be purchased through them. Still, it does mandate some specific requirements that the paralegal insurance coverage must meet or exceed.

According to By-Law 6 of the Law Society of Ontario's by-laws, professional liability insurance for paralegals with a Class L1 license must:

• Have an aggregate policy limit of at least $2 million per year and a single claim limit of at least $1 million per year.
• Have a reasonable maximum deductible amount, as determined by the financial resources of the licensee.
• Include liability coverage for errors, omissions and negligent acts that could arise for a licensee with a Class L1 license.
• Have an extended reporting period provision for at least 90 days after the cancellation of the policy.
• Name the Law Society of Ontario as an additional insured to report claims and receive notice that the policy has been amended or cancelled.
• Include a provision that the policy can only be amended or cancelled with a minimum of 60 days written notice to the Law Society of Ontario.

When you work with the qualified insurance brokers at Morison Insurance, we will we will ensure we try and obtain paralegal insurance in Ontario that meets or exceeds all mandatory requirements from the Law Society of Ontario and that you otherwise have the coverage necessary to protect you from financial losses in the event of an insured peril. Speak with an expert broker today to start a paralegal insurance quote.

Is Coverage Other Than Professional Liability Necessary for Paralegals?

While professional liability is the only type of insurance coverage required to be included in paralegal insurance, Ontario legal professionals need other types of insurance to ensure they are adequately covered. Professional liability insurance protects against the costs of being sued for specific reasons. Still, of course, there are many more reasons why you could have a lawsuit brought against you, and you'll need to be able to fall back on the financial support of insurance if and when that happens.

There may also be situations where clients, employers or other parties want you to provide proof of insurance for types of coverage other than professional liability, and you'll need to be able to produce a certificate of insurance that lists the desired insurance and coverage limit. For example, if you lease an office, it's common for the property owner to require commercial tenant insurance. Or, a client with whom you are conducting business online may want proof that you have cyber liability coverage.

What Types of Coverage Are Available for Paralegal Insurance in Ontario?

Your career in legal services is unique, and your paralegal insurance policy needs to be tailored to address your particular insurance needs as determined by a wide range of factors such as the type of work you do, where you do it, who you accept as clients and much more. Here are some types of coverage you will likely need or may want to consider adding to your paralegal insurance in Ontario.

Professional Liability Coverage

Because you provide legal services, you are already very well aware of what will happen when someone brings a lawsuit against you, including the high costs involved with mounting a legal defence and, should you be found liable, paying damages. With the right types of liability coverage in your paralegal insurance package, you can expect compensation from your insurance company to deal with expenses such as attorney fees, defence costs, dispute resolution, settlement payments, etc.

Professional liability insurance, also called errors and omissions insurance coverage, offers coverage should you be sued based on claims of negligence and error in providing legal advice.

Commercial General Liability Insurance

Commercial general liability (CGL) is sometimes referred to as slip-and-fall insurance, and that's the most common example of a CGL claim: someone comes into your office and injures themselves by slipping on a wet floor or ice-covered walkway and chooses to sue you for causing third-party bodily injury. Commercial general liability insurance also applies to allegations of third-party property damage. In those types of situations, your insurance carrier would provide you with the funds to cover your legal costs up to the coverage limit listed on your policy, subject to policy terms and conditions.

Cyber Liability Insurance

You undoubtedly use a computer daily to do your job, which likely involves sending and receiving financial transactions online and storing sensitive information about your clients that others would like. Those activities make you a target for cybercriminals looking for information they can exploit directly. If a data breach happens, you don't just have to worry about the cost of being sued by your clients for allowing their information to be exposed. You may also have to deal with expenses such as the cost of notifying your clients that a data breach has occurred and even potential ransom payments to recover blocked data. If your paralegal insurance includes commercial cyber liability, you can get financial support from your insurer for some or all of the above costs, depending on how your policy is written.

Employee Dishonesty Insurance

You may have assistants, receptionists and other types of employees who work for you, and while no one wants to believe that their employees could commit crimes against them, it does happen. Also known as commercial crime insurance, employee dishonesty coverage gives you some financial protection against the effects of crimes committed by your employees, such as fraud, theft and embezzlement. Suppose a cheque payable to your company is stolen, altered and cashed by your employee. In that case, the employee dishonesty insurance coverage on your paralegal insurance policy will provide you with some reimbursement of the lost funds up to your coverage limits, as it's unlikely you'll recover the stolen money from the guilty party.

Other Types of Paralegal Insurance to Consider

• Employment Practices Liability
• Excess Liability Coverage
• Commercial Property Insurance Coverage
• Business Contents Coverage

Do Paralegals Need Their Own Insurance If They Work for a Lawyer or Law Firm With Insurance Coverage?

Paralegals who work for a lawyer or law firm may not need some types of insurance coverage, such as commercial property insurance or commercial general liability, because the kinds of incidents those coverages apply to will fall under your employer's insurance coverage. However, paralegals must have their own professional liability coverage as part of their paralegal insurance in Ontario.

While your employer will most likely have professional liability insurance that will likely cover you if your services are included in a lawsuit against your employer, their insurance will not cover your personal actions not related to their company. That means if you are personally named in a lawsuit or claim, you will need your own professional liability insurance to receive insurance compensation for your legal costs. This is one of the many reasons why the Law Society of Ontario requires paralegals to have their own professional liability coverage, regardless of whether they operate their own business or work for a lawyer or law firm.

What is Extended Reporting Period Coverage, and When Is It Necessary?

There are generally two types of coverage available for professional liability insurance: claims-made and occurrence. Paralegal insurance typically has professional liability coverage that is issued on a claims-made basis, which means that to receive insurance compensation, you must have an active policy at the time when the claim is made against you. That means if you cancel your insurance policy because you're no longer working as a paralegal and are then sued for an incident that occurred while your paralegal insurance policy was active, coverage will be considered because the policy was cancelled by the time the claim was made.

The solution to this problem is to add extended reporting period coverage to your claims-made policy. As the name suggests, this effectively extends the period of time in which you claim for coverage beyond the time when your policy has been cancelled, and it's possible to get it for varying lengths of time. According to the Law Society of Ontario, you must have an extended reporting period of at least 90 days. However, you may need or want it to be longer than that. Consult with your Morison Insurance broker to learn more about the best option for the length of your extended reporting period or to begin a paralegal insurance quote.

How Do I Get Started On Obtaining the Right Paralegal Insurance in Ontario?

If you need a paralegal insurance quote, contact the experienced brokers at Morison Insurance by calling 1-800-463-8074. We take pride in delivering comprehensive client service beyond expectation, including honest communication and reliable insurance advice. Give us a call today to begin a paralegal insurance quote in Ontario.

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking with a Morison broker.