Solicitors in the ACT holding an unrestricted practising certificate are required to hold an approved professional indemnity policy under section 311 of the Legal Profession Act 2006.
Under the terms of the Legal Profession Act 2006, the Law Society is responsible for approving certain arrangements with respect to solicitors’ compulsory professional indemnity insurance. Specifically, the Society is responsible for approving policies of insurance which are marketed to law firms in the ACT.
The Society has approved four policies of insurance. They include the policies marketed by:
- LawCover Insurance Pty Ltd
- Liberty International Underwriters (arranged on behalf of the Society by Arthur J Gallagher)
- The Legal Practitioners Liability Committee of Victoria (in respect only of firms who have an office in Victoria in addition to their office in the ACT)
- Liberty International Underwriters (in respect of community legal centres)
The ACT is the only jurisdiction which maintains a competitive market for professional indemnity insurance. PII in other states is obtained through state-sanctioned monopolies.
The competition, principally between Arthur J Gallagher and LawCover, has exercised a limiting effect on the growth of PII premiums while maintaining conditions of insurance to the benefit of law firms and their clients.