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Professional Liability Insurance for Paralegals 

Professional Liability Insurance (which can also referred to as Errors & Omissions Insurance) is a type of protection insurance policy that may cover costs that are incurred in the case where you make a mistake while delivering a service, failing to deliver on what you have promised to do or failing to deliver at all. It responds to any claims that arise from acts of professional negligence.

What Are Paralegals? What Kind of Legal Services Can They Offer? 

Paralegals can provide a select of legal services in Ontario.
Paralegals can provide a select of legal services in Ontario.

In accordance to the Law Society’s By-Law 4, licensed paralegals in Ontario are permitted to practice in the following areas:

  • may represent someone in Small Claims Court
  • in the Ontario Court of Justice under the Provincial Offences Act
  • on summary conviction offences where the maximum penalty does not exceed six months’ imprisonment and /or a $5,000 fine
  • before administrative tribunals, including the Financial Services Commission of Ontario (FSCO)

A licensed paralegal can do the following in the course of representing a client in any of the above:

  • give legal advice concerning legal interests, rights or responsibilities with respect to a proceeding or the subject matter of a proceeding
  • draft or assist with drafting documents for use in a proceeding
  • negotiate on behalf of a person who is a party to a proceeding

Licensed paralegals are not permitted to appear in Family Court and may not provide legal services that only a lawyer may provide, such as drafting wills or handling real estate transactions or estates.

However, on December 1, 2017, the Law Society of Ontario voted to work on developing a special license that would initially support training for paralegals. While still in its infant stages, it’s a tremendous step for paralegals in Ontario.

Why Do Paralegels Require Professional Liability Insurance?

Professional Liability Insurance is intended to help protect paralegals because they offer professional advice and services to individuals and companies, bearing the full cost of defending against a negligence claim made by a client (should they decide to file a lawsuit against you).

Put simply, licensed paralegals offer legal services to your clients‚—essentially providing professional advice to clients. The Law Society requires paralegals to have professional liability insurance.

Can I Purchase Professional Liability Insurance  for Paralegals From Anyone? 

Yes, you can purchase professional liability insurance from any insurance provider that meets the Law Society’s minimum requirements, as long as the provider’s protection policy meets the requirements. At Zensurance, we offer professional liability insurance to paralegals that does meet the minimum requirements. If you’re interested in getting a free quote, you can do so online.

Are you a Paralegal looking for professional liability insurance protection? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

What Is Covered Under Professional Liability Insurance for Paralegals?

Most professional liability insurance policies may cover economic (financial losses) which are suffered by third-parties. This type of coverage is meant to protect you by covering the costs that are associated with any errors in the services that you have provided to your clients and customers. Along with paralegals, professional liability insurance also applies to lawyers, accountants, brokers and financial advisors.

The most common exclusions in coverage for a professional liability policy are:

  • Bodily Injury (BI) and;
  • Property Damage (PD)

The above are covered by Commercial General Liability (CGL).

 

All Paralegals require professional liability insurance to protect themselves when providing legal services.
All Paralegals require professional liability insurance to protect themselves when providing legal services.

What Is Not Covered Under Professional Liability Insurance for Paralegals?

To fully protect yourself as a consultant, you’ll need to consider some other common policies. Here’s a list of additional protection policies that other staffing, recruitment and employment agencies typically bundle with their professional liability insurance to get the most out of their protection:

  • Commercial General Liability Insurance (CGL)
    This is the foundational liability insurance that any business should own at minimum. It coverts third-party lawsuits (bodily injury and property damage). (e.g. A client comes to a meeting at your office, slip and hurt themselves. They sue you because they’re injured). If you own a paralegal office where you’ve hired staff and will have clients visiting to meet, commercial general liability insurance is the type of insurance policy you want to have.
  • Business Interruption 
    If your paralegal practice is affected by a flood that destroys your work space, business interruption insurance may cover the costs associated with loss of income due to operations put to a halt.
  • Cyber Insurance
    If your customer information is compromised and their personal information is used against them (e.g. fraud activity where their I.D. is used), your customer can sue you for the cost of the damages associated. The added protection is a smart move, especially since the number of cyber attacks continue to grow, costing businesses lucrative amounts of money.
  • Directors & Officers Insurance (D&O)
    Directors & Officers Insurance protects your company against “wrongful acts” such as errors, omissions, breach of duty, neglect and misleading statements made on behalf of the company.
  • Legal Expense Insurance
    This type of insurance policy may cover legal costs allotted to defend your legal rights. This is especially targeted toward some claims relating to employment disputes, legal defence, contract disputes & debt recovery, statutory license protection, property protection, bodily injury and tax protection. (e.g. a former employee files a lawsuit against your company for wrongful dismissal. This policy will cover the cost of legal expenses).
  • Commercial Property Insurance
    Any property that you own which is used for your business which is damaged or stolen may be covered. (e.g. One of the air duct units in your paralegal legal services office is damaged and needs to be replaced).
  • Contents Insurance
    This may cover the damage to, or loss of, your company assets and possessions. (e.g. You take your business laptop away with you while on vacation and it gets stolen).

If you’d like to know how to bundle your insurance protection to protect your business, call us at +1-888-654-6030 and one of our licensed Insurance Advisors would be happy to answer any questions you have. 

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

How Much Does Professional Liability Insurance For Paralegals Cost?

The cost of owning professional liability insurance for paralegals will depend on a number of factors. Typically, premiums (what you pay for your insurance) will depend on various factors including your company’s gross revenue, founder resumes and financials.

The limits available for claims with your policy will depend on the insurance provider that you purchase your professional liability insurance for paralegals from.

Zensurance’s professional liability insurance for paralegals meets the requirements of Law Society of Upper Canada and includes the required 60 days notice of cancellation to LSUC and the requirements for all other Law Societies in other provinces across Canada.

If you’re ready to get a free quote online, our online tool can help you find an estimate in under 5 minutes!

What Kind of Information Do I Need To Get a Quote For Professional Liability Insurance for Paralegals? 

Some wise advice? To save yourself some time, it’s is a good idea to do some digging and gather some pertinent business information about you or the your company before requesting a quote.

Another great idea is to put together a list of questions beforehand so that you don’t forget what to ask once you get to speak to a broker about your options for professional liability insurance coverage. Think about the possible risks that you or your company can face when operating your business.

Here’s a list of several types of information about your business that you’ll need to gather in preparation for your search:

  • Name of your company
  • Address (and locations if applicable)
  • Revenue—this is a driving factor for your policy premium
  • Do you have a special license or designation? Proof of this may be required.
  • Your company structure—(i.e. sole proprietorship, corporation, partnership, joint venture or franchise?)
  • The date that your company was established
  • Is your company registered in Canada?
  • What is the number of employees working for your company?
  • Do your employ subcontractors?
  • Privacy—do you collect private information (e.g. customer data, financial information). What measures do you take to protect this information?

Having this information will make requesting a quote easy and fast—whether it’s online, over the phone or in person, and will likely prompt more questions to ask!

If you’re ready to get a free quote online, Zensurance is making it easy for business owners to get a quote in under 5 minutes!

Looking for professional liability insurance for Staffing, Recruitment and Employment Agencies ? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 


A Recap of What You’ve Learned About Professional Liability Insurance for Consultants

  • Professional Liability Insurance (which can also be referred to as Errors & Omissions Insurance or E&O) is an important policy that may cover costs that you incur in the case where you make a mistake while delivering a service, failing to deliver on what you promised to do or failing to deliver at all.
  • Professional liability insurance coverage focuses on alleged failure to perform on the part of, financial loss caused by, an error or omission in the service or product sold by the policyholder.
  • Paralegals are required to have professional liability insurance to provide legal services. In accordance with By-law 6, Part II, section 12 (1), paralegals require the policy limit of $1 million per claim (and $2 million in the aggregate).
  • Most professional liability insurance policies cover economic (financial losses) which are suffered by third-parties.
  • The most common exclusions in professional liability insurance policyare:
    • Bodily Injury (BI)
    • Property Damage (PD) and;
    • Intentional/Dishonest acts.
  • Make sure you are prepared! When you research quotes and are trying to find professional liability insurance for paralegals, it’s always smart to gather your business information beforehand. You’ll save time and will be making it easier for you and the insurance provider.
  • The cost of professional liability insurance for paralegals will depend on a number of factors, including your company’s gross revenue, founder resumes and financials.
  • To fully protect yourself and your business, you’ll need to consider some other common policies. Some of the other common policies that consultants should consider are Commercial General Liability Insurance (CGL)Business Interruption InsuranceCyber InsuranceDirectors & Officers (D&O) Insurance, Legal Expense Insurance, Commercial Property Insurance and Contents Insurance. 
  • Finding professional liability insurance for paralegals doesn’t have to be an arduous process. Planning ahead of time will make your experience a better one. Don’t forget to ask questions when you’re speaking to a licensed broker to see if they’re a good fit for you.
  • Do they answer your questions clearly and explain insurance terminology to you in a way that’s easy to understand? Are they available when you need them to be? Ask about the claim process, whether claims can be submitted online or if you’ll need to mail forms out.
  • On-going management of your policy—is there a digital dashboard that you’ll be provided to view your policy? If you purchased multiple policies, are there any available discounts? Will you have a dedicated licensed broker assigned to your business? Make sure to make a list of questions to ask so that you can address them without forgetting.

A List of Resources for Licensed Paralegals

Below you’ll find some very valuable resources that you should bookmark. We hope you take advantage of these links. If you think something might be missing or would like to suggest anything, we’re all ears! Send them to content@zensurance.com.

Associations

Regulatory 

Professional Development and Training 

Tips and How-to’s

News & Reading Material 

Are you a licensed paralegal looking for professional liability insurance? You can get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process.