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Common industry risks   

Understanding the risks in your industry and how our comprehensive coverage responds to protect your business.

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The Risks

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Risks Response

Management Liability

A legal practice faces an employment dispute, trust account inquiry, staff theft, or ATO audit cost.

Management Liability may respond to employment, statutory, crime, tax audit and inquiry cost claims.

Employment Practices Liability

A staff member alleges unfair dismissal, workplace bullying, harassment or discrimination and pursues a formal claim for compensation.

Employment Practices Liability Insurance may respond to claims arising from alleged unfair dismissal, bullying or discrimination by employees.

Loss of Documents

Client files, legal documents or project records are lost, damaged or mislaid while in your care, resulting in delay and financial loss.

Loss of Documents is a benefit under Professional Indemnity Insurance. It may respond to costs incurred to replace or restore lost documents.

Public Liability

A client or visitor slips in your office and alleges your business caused their injury or property damage.

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Professional Indemnity

A missed filing date or drafting error causes a client to suffer financial loss, and a professional negligence claim is made.

Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.

Management Liability

The Risks

A legal practice faces an employment dispute, trust account inquiry, staff theft, or ATO audit cost.

Risks Response

Management Liability may respond to employment, statutory, crime, tax audit and inquiry cost claims.

Employment Practices Liability

The Risks

A staff member alleges unfair dismissal, workplace bullying, harassment or discrimination and pursues a formal claim for compensation.

Risks Response

Employment Practices Liability Insurance may respond to claims arising from alleged unfair dismissal, bullying or discrimination by employees.

Loss of Documents

The Risks

Client files, legal documents or project records are lost, damaged or mislaid while in your care, resulting in delay and financial loss.

Risks Response

Loss of Documents is a benefit under Professional Indemnity Insurance. It may respond to costs incurred to replace or restore lost documents.

Public Liability

The Risks

A client or visitor slips in your office and alleges your business caused their injury or property damage.

Risks Response

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Professional Indemnity

The Risks

A missed filing date or drafting error causes a client to suffer financial loss, and a professional negligence claim is made.

Risks Response

Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.

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Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.

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Products

Coverage for Legal Services

Professional Indemnity, Employment Practices Liability, and more for Legal Services from leading insurers

Professional Indemnity

Covers negligence claims from third parties to help protect your business from professional errors

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Management Liability

Bundled insurance for executives and boards incl D&O, EPL, Statutory Liability and Tax Liability insurance

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Employment Practices Liability

Covers wrongful acts such as unfair dismissal or discrimination by employees or contractors

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Cyber & Technology

Includes Professional Indemnity and Cyber & Technology Liability insurance for tech businesses

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Claims examples

Common claims against Legal Services

A few common situations, explained simply, so you know what claims can look like.

Unintentional Defamation
SCENARIO

During a heated dispute, a letter to the other side alleges dishonest conduct. The recipient hires lawyers and starts proceedings against your practice for defamation. You must respond, instruct defence lawyers and manage reputational fallout.

WHY IT’S COVERED

Professional Indemnity Insurance may respond to claims arising from alleged unintentional defamation, libel or slander in the course of providing professional services, including defence costs and compensation.

Lost Client Documents
SCENARIO

A will and signed transfer paperwork are misplaced after being scanned. The matter is delayed, the client complains and you pay to locate records, re-draft documents and arrange new signatures so the file can be completed.

WHY IT’S COVERED

Loss of Documents is a benefit commonly included under Professional Indemnity Insurance. It may respond to claims arising from loss or unintentional mishandling of client documents, including defence costs and compensation.

Advice and Drafting Error
SCENARIO

A client says they relied on your advice in a contract review, but a key risk was not flagged. After a dispute, they claim your work caused them financial loss and demand you pay their damages plus their costs to fix the issue.

WHY IT’S COVERED

Professional Indemnity Insurance can respond to a Claim for breach of professional duty, plus Defence Costs, subject to terms and limits.

Missed Court Deadline
SCENARIO

A small law firm misses a limitation date on a personal injury matter. The client loses the right to bring the claim and alleges negligence. They seek compensation for the lost settlement value and the legal costs they already paid.

WHY IT’S COVERED

Professional Indemnity insurance designed to cover civil liability for breach of professional duty, plus Defence Costs, subject to limits.

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT’S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

Manual handling damage

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT’S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

IS THIS COVERED?

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

SCENARIO

During a heated dispute, a letter to the other side alleges dishonest conduct. The recipient hires lawyers and starts proceedings against your practice for defamation. You must respond, instruct defence lawyers and manage reputational fallout.

IS THIS COVERED?

Professional Indemnity Insurance may respond to claims arising from alleged unintentional defamation, libel or slander in the course of providing professional services, including defence costs and compensation.

Unintentional Defamation
SCENARIO

A will and signed transfer paperwork are misplaced after being scanned. The matter is delayed, the client complains and you pay to locate records, re-draft documents and arrange new signatures so the file can be completed.

IS THIS COVERED?

Loss of Documents is a benefit commonly included under Professional Indemnity Insurance. It may respond to claims arising from loss or unintentional mishandling of client documents, including defence costs and compensation.

Lost Client Documents
SCENARIO

A client says they relied on your advice in a contract review, but a key risk was not flagged. After a dispute, they claim your work caused them financial loss and demand you pay their damages plus their costs to fix the issue.

IS THIS COVERED?

Professional Indemnity Insurance can respond to a Claim for breach of professional duty, plus Defence Costs, subject to terms and limits.

Advice and Drafting Error
SCENARIO

A small law firm misses a limitation date on a personal injury matter. The client loses the right to bring the claim and alleges negligence. They seek compensation for the lost settlement value and the legal costs they already paid.

IS THIS COVERED?

Professional Indemnity insurance designed to cover civil liability for breach of professional duty, plus Defence Costs, subject to limits.

Missed Court Deadline
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Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.

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FAQs

Legal Services insurance queries

How do I make a claim?

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You should notify your insurer as soon as you become aware of a claim or circumstance that may give rise to a claim which could include a client complaint, you discovering an incident or an allegation of harm. Claims should be made in writing and handled in line with the claims notification requirements which will be outlined in your policy wording.
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How do I make a claim?

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What is a Certificate of Currency?

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A Certificate of Currency is issued by an insurance company and is something you can use as proof that your existing insurance policy is valid. It contains all the information regarding your policy. You may be asked from time to time to prove your insurance - for loans to your business, for landlords of your premises, or for certain clients you might have. The moment you purchase your insurance from upcover you can send your proof of insurance to whoever requires it, at just a click of a button.
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What is a Certificate of Currency?

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How quickly do I need to report an incident to my insurer?

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You should notify your insurer as soon as you become aware of any incident, claim, or circumstance that may give rise to a claim. Professional Indemnity insurance typically operates on a "claims made and notified" basis, meaning both the claim must be made against you AND you must notify the insurer during the active insurance period (or discovery period if applicable). Late notification after policy expiry may not be covered unless you have purchased an extended discovery period. Prompt notification is essential to protect your rights under your insurance.
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How quickly do I need to report an incident to my insurer?

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What is a retroactive date?

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A retroactive date is the earliest date from which a claim can arise and still be covered under your policy. Professional Indemnity and certain other claims-made policies will only respond to claims arising from acts, errors or omissions that occurred on or after the retroactive date listed in your policy schedule. If an incident occurred before your retroactive date, it typically will not be covered even if the claim is made during the current policy period. Maintaining continuous cover without gaps helps protect your retroactive date — check your policy schedule or ask your broker if you are unsure of your retroactive date.
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What is a retroactive date?

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What factors might impact the cost of policy premiums of insurance for law firm?

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The cost of insurance for law firm in Australia varies depending on several factors. These typically include the nature and scope of your business activities, annual turnover, number of employees, location, claims history, and the cover limits and the applicable excess. For Commercial Motor cover, insurers also consider vehicle make, model, value, usage and driving history. Where additional covers such as Professional Indemnity or Cyber insurance are relevant to your operations, the services you provide and the sensitivity of data you hold may also affect your premium. Because each business is different, costs can vary significantly and premiums may change at renewal in line with risk and claims experience.
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What factors might impact the cost of policy premiums of insurance for law firm?

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Insight

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