Insurance - General
Q. Who owns the policy?
A. The RATE policy is owned and paid for by the plaintiff.
Q. When does the client have to pay the premium?
A. The premium is due at the successful conclusion of the plaintiff's case. If a claim on the policy is made, the premium is waived in its entirety...no risk.
Q. What does the insurance cover for the plaintiff?
A. Redress RATE insurance provides cover to your clients for any adverse costs, own disbursements, and failure to beat a With Prejudice Offer.
Q. Are our lawyer fees covered by the insurance?
A. No, this would conflict with your Contingency Fee Agreement (CFA). However, the policy premium ranks behind your legal fees.
Q. What areas of litigation can be insured under a standard ATE policy?
A. Cover can be provided for a wide range of personal injury cases including, but not limited to:
- Auto accidents
- Slip/Fall cases
- Occupiers' liability
- Long Term disability
Q. What level of insurance cover can be obtained?
The standard cover is $100k. If you believe that your case requires further coverage, we have other levels available.
Q. When does the insurance cover commence?
A. Redress RATE insurance cover is applied effective the date of the Certificate of Insurance.
Q. Who are the insurers?
A. Redress RATE is exclusively underwritten by US - "we have the pen". The coverage is provided by Arch Insurance Canada Ltd., a commercial property casualty insurer based in Toronto and is licensed to transact insurance in every province and territory in Canada. Arch Insurance Canada Ltd. has an A+ rating (outlook stable) from S&P and A+ (outlook developing) from AM Best. For more information, visit: Arch Insurance Canada Ltd.
Applying for Insurance
Q. How do I apply for an insurance quotation?
A. Under a delegated authority facility, you can bind any of your personal injury cases so long as the case:
- Is run on a CFA
- Has prospects of success (determined by you) of 50% or better
- Is within 180 days of the CFA retainer being signed
- Is a plaintiff matter
After the Delegated Authority facility is in place, all that is required is a short information form, giving the details of the client. A Policy document and Certificate Of Insurance will be emailed directly to the retained lawyer within 2 business days.
Q. Why is the individual file information under a delegated authority facility so limited?
A. Redress trusts the lawyers to whom we give a delegated authority facility and follows their expert advice on the case. We recognize that the lawyer is also taking their own risk (under a CFA) on the case, and so we are prepared to follow their advice. The case must be bound, under the delegated authority, within 180 days of the client retainer as this is when the initial disbursements are usually obtained, and these disbursements are covered under the policy (i.e. if the medical/liability reports return negatively, an insurance claim can be made immediately before any claim is filed). This ensures that none of your firm's disbursement money is at risk.
Q. Who assesses the one-off cases requiring coverage?
A. Redress will assess the cases that are submitted for individual coverage.
Q. What does it cost to obtain a RATE insurance quote?
A. Nothing. There is no application fee, and all premiums are deferred to the conclusion of the matter and only payable should your client win their case.
Q. Do we need to join a panel or provide a set number of cases per annum?
A. There is a general Terms of Business Agreement to be signed between the firm and Redress - there is no "panel" to join. We typically require a minimum number of cases annually to be insured to avoid selective coverage, however, they can be flexible.
Q. Is the premium self-insured?
A. Yes. This means that no premium is payable in the event the case is lost or discontinued. There is no deduction from the level of insurance cover in place to pay the insurance premium.