Shackleton offers Top Up professional indemnity Insurance to Attorneys. All legal practices enjoy a primary level of professional indemnity insurance through the Attorneys Insurance Indemnity Fund (“AIIF”). Firms with between 1 and 6 principals enjoy cover in the amount of R1562 500 per insurance year per legal practice.
Firms with principals in excess of 6 principals enjoy R1 640 625 to R3125 000 per insurance year.
This is not a lot of cover for 6 principals for the year, and one claim could erode the total limit of indemnity which is where Shackleton steps in to assist.
Should a firm not wish to purchase top up insurance it remains liable for the amounts claimed from the firm by a third party which could run in millions.
Careful attention must be had to the insurance cover offered under the AIIF Master policy which is revised year on year. As a top up insurer, much depends on what the AIIF cover. If for any reason whatsoever the AIIF does not pay out on a potential claim, the top up policy will also not be called into contribution for the claim (whether for the amount over and above the maximum indemnity limit of the Attorneys Insurance Indemnity Fund, or for any other amount).
Yes absolutely, provided extensions are selected and paid for by the Insured, you will enjoy cover for those risks notwithstanding the AIIF does not cover them. Please note however that the sub limits ibn respect of the extensions selected shall not exceed the limit of indemnity for the professional indemnity section and shall be subject to the total combined limit of indemnity stated in your policy schedule.
A law firm requires this cover to be indemnified against theft, unauthorised borrowing or misappropriation of money or property entrusted to the firm by a client, by any present or former Principal, Partner, Director, in-house Consultant or Employee of the practice.
The AIIF does not offer MOTF cover which is why it is essential that all practitioners with trust accounts carefully consider the
risks of failing to purchase cover for this risk.
The primary purpose of the AFF is to reimburse members of the public who may suffer pecuniary loss consequent upon the theft of money or property entrusted to a practitioner in the course of his/her practice or where a practitioner acts as Executor or Administrator in a deceased estate, or as a Trustee in an insolvent estate, or in any similar capacity. However the AFF is a fund of last resort which means that if the stolen money or property can be recovered from another source, the Fund will require a claimant to first exhaust all available legal remedies against the third party or the practitioner who stole the money, and/or the practitioner’s partners. Having MOTF cover could prevent the firm from being sued by the client for reimbursement of this amount.
Law firms should also consider purchasing Fidelity Guarantee cover for the loss of money or property sustained by the practice
as a direct result of fraud, dishonesty or theft by an employee in the course of employment.
Ask your broker for more information about the different sections of cover offered under our combined policy for Attorneys.