Professional Indemnity Insurance for Attorneys
Shackleton Risk Management offers Top Up Professional Indemnity Insurance to all our Attorney clients.
Legal practices enjoy a primary layer of professional indemnity cover through the Attorneys Insurance Indemnity Fund (“AIIF”). The cover is free and is granted on the terms set out in the AIIF’s Master Policy. The conditions set out in the Master Policy apply to all insured attorneys. The policy covers attorneys (and their staff) in respect of claims arising out of the conduct of the profession. The amount of cover which can range between R1,562,500 and R3,125,000 (limit of indemnity) depends on the number of partners/directors in the firm on the date that the cause of action arose.
It must be noted that the limit of indemnity is granted to the firm (and not each practitioner individually) on an annual aggregate basis. In other words, the applicable limit of indemnity is the maximum amount of cover the firm will enjoy with the AIIF for the particular year. The AIIF insurance year runs from 1 July of each year to 30 June of the following year. The responsibility lies with attorneys to familiarise themselves with the content of the AIIF policy.
As the levels of cover through the AIIF are relatively small and are offered on an annual aggregate basis in the event that a claim exceeds this primary layer of indemnity, the firm will face the possibility of bearing the claim (or part thereof) itself, and the effects may be devastating. It is thus prudent to consider that appropriate levels of Top-up cover are in place, and it is here that Shackleton Risk Management can assist.
Shackleton Risk offer Top-up cover to the amount selected by the Insured, with no excess.
Coverage is available for the following risks are Professional Indemnity, Fidelity Guarantee and Misappropriation of Trust Funds.
These are discussed below:
Professional indemnity insurance is indemnity in respect of an attorney’s legal liability to pay compensation to any client (including claimant's costs, fees and expenses) for any negligent act, error or omission which arises in the performance of his Professional Duties.
Additionally Shackleton Risk offer several extensions to the Top-up PI section of the policy which include:
- AIIF Excess Infill
- Claims preparation costs
- Defence Costs to appear before a statutory body
- Investment Advice
- Liability following Employee Dishonesty
- Loss of Documents
- Sub-contractors / Correspondents
Shackleton Risk can also place cover for Impersonation Fraud through its network of Insurers.
For more on extensions or Impersonation Fraud Cover, contact your broker
Fidelity Guarantee insurance indemnifies the Insured for the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by an employee in the course of employment subject to terms and conditions contained in the policy.
Misappropriation of Trust Fund, or MOTF as it’s commonly called, indemnifies a practice the event that his / her client pursues a claim against the law firm for theft committed by a practising practitioner, his candidate attorney or his employee, of any money or other property entrusted by him / her to an attorney, his candidate attorney or employee in the course of performing legal duties or while acting as executor or administrator in the estate of a deceased person or as a trustee in an insolvent estate or in any other similar capacity.
This cover is available in three different variations
- Blanket Basis – this basis allows the Insured to cover all staff members within the practice
- Named Positions Basis – this basis allows the Insured to insure specific positions within the practice eg bookkeeping, finance department
- Named Persons Basis - this basis allows the Insured to insure specific employees within the practice
For more information or to set up a consultation, please contact your local broker.