Insurance - General
Q. Who owns the policy?
A. The LEI 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 LEI 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 LEI 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
- Short Term disability
- Dog Bites
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. For your existing portfolio, the cover is applied retroactively to your Contingency Fee Agreement with the client. For your new files, the cover is applied effective the date of the Certificate of Insurance.
Q. Who are the insurers?
A. Redress LEI 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. Contact us to begin your application for a firm-wide Delegated Authority Program, which allows you to bind any of your eligible personal injury cases. The application is simple and should only take 20 minutes of your time.
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. What does it cost to obtain a LEI 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. Can I insure my existing cases?
A. Redress offers a one-time opportunity to enroll your eligible existing clients when you first sign up with us.
Q. What happens if the case settles for significantly less than anticipated?
A. Only Redress recognizes that some cases, for whatever reason, just do not amount to much. In this circumstance, for cases which settle under $25,000.00, Redress will reduce the premium owing.
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.