XN Holdings, parent company of XN Risk Insurance Services (Canada) Inc., announced the launch of a Law Firm Management Liability Policy designed to meet the evolving needs of Canadian legal professional firms.
XN said the Law Firm Management Liability Policy “is the first of its kind in Canada designed to address a wide range of liabilities law firms may confront from customers, suppliers, job applicants and employees, unrelated to the provision of legal services.
“Policy limits are routinely available up to $5,000,000 CDN [US$436 million] in the aggregate over a minimum retention of $10,000 CDN [US$8,723], while limits of up to $10,000,000 CDN [US$8.723 million] can be made under select circumstances.”
XN Risk’s Managing Director Phil Hoyt explained: “Recent amendments to provincial partnership legislation have impacted the governance structure of law firms, while expanding firms have recognized that management on the part of the entire partnership is impractical. Many law firms are now operating as limited liability partnerships with a governance structure wherein decisions are made by legal professionals and non-lawyer executives. These practical imperatives give rise to a host of liabilities unaddressed by traditional programs.”
The Policy provides critical liability coverage for errors and omissions arising in the governance of limited liability partnerships including claims from staff lawyers, non-professional staff, customers and suppliers, liability coverage for wrongful employment practices. Outside directors and officers coverage (ODL) for lawyers in a limited liability partnership who hold positions on outside Boards of privately held companies is automatic, with certain allowances possible as respects ODL for lawyers in a LLP who hold positions on outside Boards of publicly traded companies.
“XN Risk continues to innovate by packaging adapted insurance products that respond to the changing governance environment in Canada,” noted XN Holdings CEO Dan Anber. “The Law Firm Management Liability Policy reflects the broadest coverage currently available in the Canadian Market for governance liability arising out of the operations of a limited liability law firm”.
“This new product is a tool of unquestionable value in a law firm’s efforts to mitigate its management liability exposures”, indicated Eric Dolden, Partner at Vancouver-based law firm DolXN Risk Insurance Services (Canada) Inc.’s Law Firm.
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