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FAQs – Lawyers Management Liability Insurance

FAQs – Lawyers Management Liability Insurance

The Lawyers Management Liability Insurance is a packaged insurance policy made up of several insurance covers, customised by Lawcover for law practices. It has been designed to cover some of the key risks associated with running a legal practice. It is not a compulsory insurance product.

Lawcover Insurance Pty Limited (Lawcover), which is the provider of approved professional indemnity insurance policies to law practices in NSW (and elsewhere in some cases), is also the insurer of the Lawyers Management Liability Policy.

Lawcover is authorised by the Australian Prudential Regulation Authority pursuant to the Insurance Act 1973 (Cth), to carry on this insurance business.

Public Liability
Cover for third party claims against the Insured legal practice for Personal Injury and Property Damage occurring during the Period of Insurance, for which the Insured is liable, including Defence Costs.

Employment Practices Liability
Covers the Insured legal practice for claims made by employees (including past and prospective) relating to employment practices.

Internal Crime
Covers financial loss to an Insured legal practice for financial loss arising from employee theft or fraud or dishonesty.

Statutory Liability
Covers the Insured legal practice and directors and partners for fines and penalties payable by the Insured relating to the operation of the business (where insurable), as well as Defense Costs. Does not cover cyber breaches or incidents, or privacy breaches. (Refer to the Lawcover group cyber policy for coverage available.)

Tax Audit Costs
Cover for the costs of the Insured legal practice associated with responding to a tax audit notice (but not any taxes or fines.)

Directors & Officers
Covers claims relating to wrongful acts in managing or conducting the business, whether or not the company provides an indemnity. Protects past, present and future directors and officers (including key persons involved in the management of the legal practice.)

Mitigation Costs
Cover for the cost of mitigating a matter that would otherwise lead to a claim under some of the above covers.

Legal Practices with no employees:

  • Public liability
  • Business practices
    • Statutory liability
    • Tax audit costs

Legal Practices with employees, no companies

  • Public liability
  • Business Practices
    • Employment practices liability
    • Internal crime
    • Statutory liability
    • Mitigation costs
    • Tax audit costs

Legal practices with employees and one or more companies
(eg. ILPs, practices with service companies)

  • Public liability
  • Business Practices
    • Employment practices liability
    • Internal crime
    • Statutory liability
    • Mitigation costs
    • Tax audit costs
    • Directors & Officers

Professional indemnity insurance (PII) is compulsory for lawyers, so every practice needs to purchase PII to meet their registration requirements. Solicitors are not able to engage in private practice without insurance.

In broad terms, PII covers lawyers for claims brought by clients arising from legal work.
Management Liability products, which are not compulsory insurances, cover claims brought against the business relating to other aspects of running a legal business, which are not the legal work itself.

Email us, and we will send you a proposal form. After receiving that form, we will send you out a quote.