- LARGE’professional insurance for lawyers protects professionals from damages caused to third parties during the exercise of their profession.
- Art. 12 of Law no. 247/2012 establishes the obligation of lawyers to take out professional insurance.
- The insurance policy covers any kind of damagehereditary or not, caused to third parties during the exercise of the profession.
Those who work as lawyers often find themselves at odds with some critical issues that should not be underestimated involving ancestral, financial and personal aspects of its customers. In the forensic field, those defending their clients could inadvertently cause harm of all kinds.
We can talk about monetary and moral damages, permanent or temporaryof varied nature. For these reasons it is necessary for these professionals to take out insurance to protect themselves in the performance of their duties.
It should be emphasized that in Italy those working as lawyers with regular registration in the Register must necessarily take out self-employed insurance. Let’s see how we go.
What is paralegal insurance?
Lawyers professional insurance, also known as lawyers professional insurance or professional indemnity insurance policy for lawyersit is a protective tool used by these workers in the exercise of their profession.
In fact, in the exercise of his activity, a lawyer can take risks cause damage to third parties, both paternal and non-paternal. However, by signing the policy, the professional is protected.
This can happen, for example, if a person asks the lawyer compensation for damage caused by defects or violations of procedural rules that lead to the invalidity of the documents, but also in case of delays in filing the documents or the complete impossibility of filing them.
It should also be recalled that the policy also covers acts of negligence committed by partners, employees and professionals of the insured.
Professional solicitors insurance: is it compulsory?
Based on the provisions of the Executive Decree of the Ministry of Justice (No. G.E. 238 of October 11, 2016) of 2017 and the provisions of art. 12 of Law no. 247/2012, for lawyers It is mandatory to take out a professional policy.
This applies not only to those who practice independent work, but also to professionals who work in companies or associations. According to the law, in fact, every lawyer registered in the professional register is required to take out professional indemnity insurance.
The law requires the lawyer discloses the details of the insurance policy to its customers. In addition, the legislation states that failure to comply with this obligation constitutes a disciplinary offence.
As a result, lawyers who do not take the policy risk financial penalties are imposed, but not only. In fact, they can also be subject to censorship and suspension from the profession for up to two years or even exemption from the professional register.
Professional solicitors insurance: how it works and deductibles
For lawyers, ie professional insurance limits they are not always the same. In fact, they depend on the type of activity carried out, independently or jointly, as well as the turnover achieved in the last financial year.
In fact, for lawyers who operate individually and have a turnover of up to 30,000 euros, the minimum limit is 350 thousand euros. Conversely, for activities performed collectively by up to 10 professionals and a turnover of up to €500,000, the minimum limit is €1 million for each claim, up to a maximum of €2 million for each insurance year.
Instead, about professional insurance discounts, these also depend on the turnover. For turnovers below 100,000 euros the discount is 500 euros, while for turnovers above 100,000 euros the discount starts from 1,000 euros.
Retroactivity and hyperactivity of politics
The law states that insurance policies for lawyers must they foresee it unlimited recursion, also in favor of the heirs. This clause guarantees cover for any losses or omissions committed by the solicitor prior to the conclusion of the policy for which no claim has yet been received.
However, for this clause to apply, the lawyer must not know about the accident committed previously.
But apart from retroactivity, politics must also provides one hyperactivity, that is, a post-mortem guarantee that protects the professional and his heirs even after the cessation of activity. Typically, overactivity must cover a minimum period of ten years.
What does professional insurance for lawyers cover?
The lawyers’ professional policy covers from damages caused in the exercise of the profession, as we have already seen. A CC of this type covers the civil liability of lawyers arising from the exercise of the profession.
This protection also covers damage arising from the safekeeping of documents, cash, securities and valuables taken on deposit from customers.
As we have predicted, professional insurance is also triggered for damages arising from the possible presence of defects or defects violation of procedural rules which lead to the invalidity of the act. Furthermore, the insurance covers any delay or inability to submit documents, as well as loss or destruction of documents.
Politics interferes with any kind of damage caused to third parties, monetary or non-monetary. It also offers protection for temporary or permanent, present and future, as well as direct and indirect damages.
In addition, the ES of lawyers also protects against serious error caused by the exercise of a professional activity. We remind you that the law with the Decree of September 22, 2016 defines as professional activity:
- the activity of representation and defense before judicial authority or arbitrators, ceremonial or otherwise;
- the acts prescribed, connected or arising from it, such as the registration of the case or the execution of notifications;
- out-of-court advice or assistance;
- drafting opinions or contracts;
- assisting clients to conduct mediation or assisted negotiation.
In addition, the policy offers coverage against negligent or malicious acts by partners, professionals, employees and procedural deputies.
Furthermore, the insurance protects the professional both for activities related to the exercise of the profession and for financial losses that the insured must pay as he is civilly liablefor costs incurred as indemnification, in addition to costs associated with the insured’s defense activities arising from any act of negligence, actual or alleged.
Compensations excluded from professional insurance
It is good to clarify that the insurance does not cover from all damages caused by the professional. In fact, the policy does not protect the lawyer against malicious acts or circumstances that the insured could have observed before entering into the contract.
The policy does not offer protection in the event non-compliance with contractual obligations assumed by the lawyer, but also from any consequential damages.
No protection is offered even for damages caused in a period prior to the establishment of the policy or for acts of negligence committed by insured not registered with the Bar Association.
Insurance of professional lawyers and agreement with the coroner’s fund
For lawyers who are registered in the Register, h Cassa Forense offers various deals with some of the key players in the insurance market. Some of these allow new lawyers to access reduced rates, while others guarantee more extensive protection.
To give some examples, professional insurance is available managed by broker Aon Spa, with attractive premiums for young people, or insurance in agreement with AIG Europe SA, broker Marsh Spa or Amissima, with cover activities parallel to forensics.
Some agreements are active with UnipolSai, Generali Italia Spa, BrokerItaly. The official website of the forensic fund is always updated on the agreements that can be concluded at favorable prices and conditions.
Professional Lawyers Insurance – Frequently Asked Questions
Lawyers’ professional insurance protects the professional against any kind of damage caused to third parties during the exercise of the profession. It covers material and moral damages, future, permanent or temporary, as well as gross negligence.
Yes, since 2017 professional insurance has become mandatory for lawyers registered in the professional register. Failure to comply with this obligation constitutes a disciplinary offence.
Once signed, professional insurance offers protection to the professional for any damage caused in the course of the profession. However, there are some limitations. In addition, the policy provides for superactivity and retroactivity clauses. Click here to learn how it works.
An uninsured lawyer risks financial penalties, professional censure and suspension from the profession for up to two years, up to and including striking off the professional register. In fact, the professional is obliged by law to sign the contract.
In the event of errors or defects that jeopardize the validity of the legal act or legal process, the client may request compensation from the professional. Compensation for damages will be paid from the insurance policy signed by the lawyer.
To benefit from the protection of the insurance policy, the lawyer must practice in compliance with his contractual obligations and be regularly registered with the Bar Association. For pre-signing damages, the attorney must not know the accident was committed.