New South Wales Consolidated Regulations

LEGAL PROFESSION UNIFORM GENERAL RULES 2015 - REG 79

79 Minimum standards for professional indemnity insurance--barristers

(1) This rule sets out, for the purposes of section 210(1)(b)(i) of the Uniform Law, the minimum standards for professional indemnity insurance in relation to a barrister.

(2) Professional indemnity insurance must indemnify the barrister against civil liability incurred while engaging in legal practice as a barrister within Australia.

(3) Professional indemnity insurance must provide indemnity for claims actually made and notified during the period of insurance.

(4) Professional indemnity insurance must provide minimum coverage of $1.5 million for each and every claim, or each and every loss, inclusive of the claimant's costs and defence costs, up to a minimum aggregate limit of $4.5 million.

(5) Professional indemnity insurance must provide indemnity for a minimum of 7 years for run-off liabilities in the event that the insured dies or ceases to engage in legal practice as a barrister for any reason, other than having the insured's Australian practising certificate cancelled as a result of disciplinary action.

(6) In the case of a claim arising from dishonesty or fraud, professional indemnity insurance must not exclude indemnity of a barrister who was not knowingly involved in or party to the dishonesty or fraud.

(7) Professional indemnity insurance need not but may provide indemnity to the extent that the subject matter of the claim entitles a claimant to claim and receive compensation from a fidelity fund, guarantee fund or similar cover provided under jurisdictional legislation.

(8) Professional indemnity insurance must provide retroactive cover, except for claims arising out of fraud or dishonesty. However, it is permissible for the insurance to impose a retroactive limitation on cover--

(a) if the retroactive date is the date the barrister commenced to engage in legal practice as a barrister, or

(b) if--

(i) the barrister has previously ceased to engage in legal practice as a barrister and is covered for run-off liabilities arising from that prior practice under another insurance policy, and

(ii) the retroactive date is the date the barrister resumed legal practice as a barrister.