Lawcovernotes December 2016

1. Don’t make admissions or incur costs The PI policy imposes an obligation on insured solicitors not to make admissions about claims, or to incur costs without Lawcover’s prior permission. As soon as a claim is made against you or your firm, you must notify Lawcover and we will assume conduct of the claim. While it might be tempting to apologise to a client if you think you have made a mistake, be very careful about whether an apology could be construed as an admission of liability and pleaded against you in future proceedings. Lawcover is very mindful of the desire to preserve client relationships wherever possible, and our claims solicitors will take that into account when considering future strategy for the claim. 2. Hand over conduct of the defence to us Claims are stressful, distracting and time consuming. But once Lawcover accepts indemnity for a claim, we also assume conduct of the defence on your behalf so you can focus on your practice. We will consult you as much as possible about things like appointing panel lawyers, conducting the litigation and developing strategy but, ultimately, Lawcover is responsible for the conduct of the defence. 3. It’s still your claim, so set aside some time to help As part of a cooperative and proactive approach to defending proceedings brought against you, the PI policy imposes a duty to cooperate on you. You will need to make yourself available to give instructions about factual matters, provide your file and assist the Lawcover panel lawyers throughout the defence process. 4. Be prepared to make decisions about settling or appealing claims One of the biggest decisions in defending any litigation is whether to make or accept a settlement offer. Under the PI policy, that is a joint decision for you and Lawcover; neither of us can settle a claim without the consent of the other. If we cannot agree, the PI policy sets out a mechanism to resolve the dispute, either by getting an independent decision, or by allowing you to take back defence of the claim yourself. 5. Act with utmost good faith Overarching all the rights and obligations under the PI policy is a duty on both Lawcover and you to act in the utmost good faith. Our decisions about running and settling claims must give consideration to your interests, and your decisions and conduct must take into account Lawcover’s interests. Essentially, we are both part of the legal profession and all on the same team. Elissa Baxter General Counsel Company Secretary In the last edition of Lawcover notes we detailed what’s covered by the Lawcover primary professional indemnity (PI) policy and what isn’t. This follow-up article concerns the five things you need to know about your rights and the obligations of all parties under your policy once Lawcover grants indemnity for a claim. 5.