March 2, 2022
Did you know paralegals and legal assistants are one of the most in-demand jobs in Canada? Job Bank Canada found that paralegal jobs are expected to grow by approximately 14,200 in the next 8 to 10 years thanks to expansion, replacement, school leavers, immigration and mobility in provinces such as British Columbia, Quebec and Saskatchewan. (1)
Paralegals are integral to the administration of justice, from preparing legal documents to conducting research. However, any service or advice provided to the public comes with some risk. A paralegal firm or paralegal professional could be sued for a document error, misrepresentation, or financial loss as a result of their advice.
Whether a paralegal works for a local law firm or accepts clients, having professional liability insurance is crucial to being successful in the legal system.
Do All Paralegals Require Insurance?
Canadian law societies require paralegals who provide legal services to the public to carry Professional Liability Insurance (also known as Errors & Omissions) with a minimum limit of $1 million.
There are some provinces, like Ontario, that cover paralegals whose work is performed on behalf of attorneys or law firms. However, those policies do not cover the paralegal personally; rather, they provide coverage should a suit against a lawyer include the paralegal’s services.
Currently, only Ontario regulates paralegals in Canada. Carrying insurance will become increasingly important, however, as more provinces regulate the profession.
By having liability insurance, paralegals ensure their personal safety in the event of a claim or lawsuit, as well as providing protection should they take on clients or work with multiple lawyers or law firms.
What Could Go Wrong
The majority of paralegals practice law on a judicial basis. In some cases, however, a disgruntled client or preparation oversight could result in a lawsuit.
Imagine, for instance, a client retaining the services of a paralegal after a car accident sues the at-fault driver for the collision, following the advice of the paralegal. Upon doing so, however, the client discovers that the lawsuit cannot be filed since the limitation period has expired. The paralegal failed to inform the client of the deadline to file a suit against the at-fault driver, and so the client sues the paralegal for negligence. In such a case, professional liability insurance will likely cover the legal expenses and the outcome of the third-party lawsuit.
A professional liability policy may also cover medical bills, legal fees, and possible monetary settlements. Imagine, for instance, that a client visiting a paralegal's office falls and is injured on the premises and, following medical treatment, sues the paralegal for bodily injury to a third party. This is where the CGL of a professional liability policy can help.
What’s Covered with SWG PL: Miscellaneous Professional Liability
SWG PL - Miscellaneous Professional Liability insurance offers a packaged E&O and CGL policy that covers a wide range of classes of business. Tailored E&O coverage protects small to large firms from a broad range of miscellaneous risks. SWG provides a Miscellaneous PL policy at competitive rates, bringing extensive knowledge and underwriting experience in professional liability.
Including but not limited to the list below. Contact us if you don’t see what you’re looking for.
● Accountants, Bookkeepers, and Tax Preparation
● Business Consultants
● Collection Agencies
● Travel Agents
● Employment Agencies
● Event Planners
● Interior Designers
● Leasing Agents
● Management Consultants
● Utility Locators
● Paralegal Offices
● Occupational Health and Safety Consultants
● And many more
For more information, visit our product page at https://swgins.com/product/miscellaneous.html
Content is current as of the date of broadcast and is subject to change without notice.