Lawcovernotes May 2013

As a result of this review, we have made some changes, with the approval of the New South Wales Attorney-General. The majority of the changes are simply the result of re- organising the layout of the policy and others have beenmade solely to clarify the way we have always intended to handle your insurance. There is one change to the way your consent is sought to settle claims, and that change is explained below. The remainder of the policy is fundamentally unchanged. In making amendments to the policy we aim to ensure it is contemporary and continues to provide benefits to insured practitioners. The changes and benefits include: ■ Further clarity and transparency in both the policy wording and layout. ■ A more robust dispute resolution process. Under the previous policy, LawCover employed a dispute resolution approach to settling claims, and this remains an important part of the way we operate. The new policy therefore includes an additional clause which makes it explicit that we are able to participate in, or refer disputes to, mediation or other alternative dispute resolution processes. ■ Automatic loading no longer applies to a ‘first claim’. Any firm that has been claims free (notifications are not claims) on or before 1 July 2011 will not automatically receive a loading on their premium, should a claim arise after this date. ■ Reduced excesses for firms with gross fee income below $400K. ■ Changes to excesses applied to prior practice claims. If your practice is a successor practice and a claim arises from the prior practice, then the excess that was applicable to the prior practice will apply to the claim. Should however, the prior practice excess be higher than yours then the lesser of the two excesses will apply. ■ Consent to settle. The most substantial alteration to the policy concerns the way in which insured practitioners provide their consent to settle claims. The new LawCover policy includes a new consent to settle clause (clause 20), which brings it into line with the cover offered by other insurers of Solicitors in Australia. Changes to the 2013/14 Compulsory Professional Indemnity Insurance Policy In order to ensure that we are providing the most effective cover available to the legal profession, LawCover has undertaken a complete review of the compulsory professional indemnity insurance (CPII) policy this year. Notes