Importance of Early Reporting
We can’t stress enough the importance of early reporting of a claim or potential claim. Your CLIA Policy and Code of Professional Conduct require you to report a claim or potential claim as soon as practicable after learning of a claim or becoming aware of circumstances that might give rise to a claim, however unmeritorious. Failure to report in a timely fashion can jeopardize your coverage. Late reporting also makes the handling and resolution of a claim more difficult.
Some examples of when to report a claim include but are not limited to:
a mistake is discovered which has or may have caused damage to a client;
any threat or communication of intention to sue had been made by a client;
another lawyer, on behalf of your client, requests your file; or
a client expresses dissatisfaction with the handling of a matter and there is an indication the client believes a loss has occurred.
Reasons to report early include:
Late reporting could result in denial of a claim. Your Policy is a claims-made policy. Under a “claims made” policy, the insured is required to report during the policy year in which they become aware of the claim or potential claim.
It puts the insurer in the best position to defend and resolve anticipated litigation.
It may allow the insurer to fix a problem or take steps to minimize the financial consequences of a mistake.
A recent claim highlights the importance of early reporting as the claim may not only be denied under the policy for late reporting, but steps could have been taken to avoid the loss. A lawyer became aware of an issue in 2019 in which an action could be dismissed for delay. However, the lawyer took no action to ensure the matter was not dismissed and did not report to the insurer until 2024. If the lawyer had reported in 2019, the insurer would have instructed the lawyer to file a Notice of Motion and had he done so, any potential issue may have been avoided.
There are no good reasons to delay reporting a claim, but we understand that dealing with a negligence claim can be stressful. It is important to overcome your anxiety and fear and report as soon as possible. The LAWPRO article “Putting the Fire Out: Dealing with the Stress of a Malpractice Claim” discusses the embarrassment, anger, and fear experienced by some lawyers facing a claim and can hopefully provide some encouragement.
If you are in one of the following jurisdictions, see the links provided below for more information on reporting a claim:
If you are in the Northwest Territories, Nunavut, Prince Edward Island or the Yukon, claims for errors and omissions are handled through CLIA. All insured lawyers in these jurisdictions are required to report to CLIA as soon as possible after learning of a claim or becoming aware of circumstances that might give rise to a claim.
To report a potential claim, use the Insurance Claim Report Form supplied by CLIA. Send your completed form by email to claims@clia.ca.
You can also courier your claim to CLIA at:
Canadian Lawyers Insurance Association
Suite 1530, 2002 Victoria Avenue
Regina, Saskatchewan, S4P 0R7
A copy of your report must also be filed with the law society in your jurisdiction.
NOTE: If you carry excess insurance coverage over the $1,000,000 mandatory coverage, you should consult the excess coverage policy regarding the required procedures. A report to CLIA may not satisfy the reporting requirements of the excess coverage policy unless that excess coverage is also through CLIA.