Opening a New Law Firm

Regulatory compliance, and insurance can be important risk management considerations for your law business.  

First, you are required to carry professional indemnity insurance coverage through ALIA, unless you fit into one of the narrow exceptions set out in Part 7 of the Rules of the Law Society of Alberta. However, there are coverage limits and other restrictions on the coverage offered by ALIA. ALIA recommends that you purchase excess insurance for coverage above the Group Policy limits, which is available from Canadian Lawyers Insurance Association (CLIA) and from insurance brokers. You should familiarize yourself with the ALIA Group Policy, which you can find along with detailed information about coverage on the ALIA website.

In addition to professional liability coverage, there are many other types of insurance that can protect you and your practice from various risks. Depending on your personal situation, consider the applicability of the following: 

• staff misappropriation (if you operate a trust account);
• public liability and/or tenants liability coverage;
• property insurance (all perils); 
• auto and home (business use); 
• business interruption; 
• life and short- and long-term disability insurance; 
• fraud coverage; and
• additional cybersecurity coverage. 

For more information, and for advice tailored to your needs, you should contact an insurance broker.