Law Practices will be able to obtain a 5% discount (the Risk Management Discount) on their total Contribution Amount from the 2017/2018 insurance year onwards, if they have fulfilled the following requirements for the discount.

1. All of the Partners or Practitioner Directors and at least 80% of the employed Practitioners of the Law Practice have attended at least two (2) hours of Law Mutual (WA) approved risk management training in the period 1st March 2016 to 28th February 2017 (for the 2017/2018 insurance year).
2. The Law Practice declares in its Application for Insurance that it has met the training requirements above and is entitled to the Risk Management Discount.
3. The Law Practice is able to produce, within 7 days of a written request by Law Mutual (WA), documentary proof that it has met the training requirements, such as certificates of the attendance of Practitioners at approved training.
4. The Law Practice must agree that if such documentary proof is not produced to the satisfaction of Law Mutual (WA), the Law Practice will immediately repay to Law Mutual (WA) the equivalent of the Risk Management Discount it received together with the GST payable thereon. Further, the Law Practice will not again be entitled to a Risk Management Discount until it has completed two consecutive years of training requirements.

The approved training for the purpose of the Risk Management Discount is set out below:

• Risk management seminars held by Law Mutual (WA)
• Select CPD seminars held by the Law Society of Western Australia
• External training courses or in-house training approved by Law Mutual (WA). Please submit the Risk Management Training Approval Form for the purposes of the Law Mutual (WA) risk management discount.

Please contact Law Mutual (WA) for details of the approval process. Please note that the 2015/2016 annual risk management seminar is not approved training

Law Mutual (WA) also recognises the importance of implementing effective risk management systems by providing a discount to Quality Practice Standard accredited Law Practices.

The Risk and Control Map sets out the key professional liability risks facing law firms, along with measures for reducing them. It was introduced to Law Mutual (WA) members during the 2015 Risk Management Seminars.

Please note that the contents of the Risk and Control Map are a guide only. It does not purport to contain all the risks and controls that may be relevant to a practice. Practitioners should consider the particular circumstances of their practice when determining the risks and controls that are relevant to them. The Map may be updated from time to time by Law Mutual (WA).

The Map may display differently and have different functionality depending on the internet browser you use. If you are unable to download it, contact Law Mutual (WA) on (08) 9324 8623 and we will endeavour to email you a useable PDF.

Law Mutual (WA) has developed the Guidelines to provide a structured view of what it considers to be the requirements for good practice and matter management, with a focus on professional liability risk management.

• Practice Management Guidelines
• Matter Management Guidelines

Analysis of claims, risks and controls has indicated that a significant number of claims have resulted from an absence of particular activities such as:

• Failure to screen or identify your client
• Inadequate client engagement agreements
• Failure to recognise conflicts
• Failure to properly train or supervise employees

The Guidelines address the need for these and other activities in a structured way and provide details of potential processes or activities to meet each of the requirements; however, the ‘appropriate activity’ will vary from practice to practice.

Law Mutual (WA) encourages practices to follow the Guidelines. Meeting the requirements is evidence of your commitment to good professional liability risk management and should also result in:

• Comprehensive service delivery for the client
• High level of client satisfaction
• Lower likelihood of complaints and/or claims.

Practitioners are encouraged to attend the Introduction to Practice and Matter Management seminar as part of the 2017/2018 Risk Management Seminar Programme to obtain further information and insight into the content of the Guidelines and how to meet the requirements in their practice.

Please send your completed registration form to cpd@lawsocietywa.asn.au. A confirmation will be sent to the email address we have on record once registration has been processed. Please allow 3-4 business days for processing.

Please email us to discuss your requirements. Law Mutual (WA) may be able to arrange in-house delivery of a seminar, depending on your number of practitioners and availability of presenters. There is a charge for this service.

This seminar is not targeted to you. However, if the seminar is not fully booked by targeted practitioners, we may release places to other practitioners. Please register your interest by email.

At present, seminars are only available face-to-face in Perth. We are investigating the development of online seminars.

From the 2016/2017 insurance year, the risk management seminars are no longer compulsory. If you are a Law Mutual (WA) Insured, and are attending a seminar that is relevant to you, then you will either not be charged, or be charged at a subsidised rate, depending on which seminar you attend.

The seminars are now targeted at priority risk management areas, firms and practitioners. Your firm may be entitled to a risk management discount on its Annual Contribution for insurance (premium) if sufficient numbers of its practitioners attend seminars.

Law Mutual (WA) Insureds will be given priority enrolment in seminars. If you are not insured you will have to pay non-subsidised rates to attend Law Mutual (WA) seminars. However, at its sole discretion, Law Mutual (WA) may allow non-insured practitioners to attend at no charge or at a subsidised rate provided the seminar is not at capacity.

No, If you are a Law Mutual (WA) Insured you can attend the risk management seminars at no charge or a subsidised rate. If you choose to attend more than two hours of subsidised training you will have to pay non-subsidised rates. Law Society members can attend additional training at member rates. Law Society CPD Active members receive complimentary registration. Law Mutual (WA) Insureds who have completed less than two hours of training will be given priority enrolment in seminars.

If during an insurance year you commence as a new law practice you will need insurance through Law Mutual (WA)’s professional indemnity insurance arrangements unless an exemption applies.

A law practice commencing practice during the Insurance Year, will have the annual contribution calculated from the date the practice applied for insurance. The insurance will only take effect once payment has been received. The full administration levy is also payable.  Depending on the class and category you are in, the relevant form will need to be need to be completed.

1. An insured law practice, and the practitioner, must advise Law Mutual (WA) as soon as possible when a practitioner is employed by submitting an Additional Practitioner Form 1A. Please allow at least 5 business days prior to the commencement date for processing.
2. Where a practitioner was not previously at a law practice insured through Law Mutual (WA) and joins a law practice during the year, a pro rata annual contribution and a full administration levy is payable. A common example is a practitioner moving from a national exempt law practice to a WA law practice.
3. The additional annual contribution and administration levy payable is set out below:

If during an Insurance Year a law practice takes on a part time employed practitioner, the annual contribution is pro-rata’d based on a working week of at least 4 hours per week. The law practice is charged the full administration levy.

If a law practice has insurance in place with Law Mutual (WA) as at 1 March, no additional contribution is payable if they increase the number of general employees during the remaining Insurance Year.  If the numbers change after 1 March, no refund is given if the number of general employees reduces after this date.

If you are a new law practice commencing in an insurance year you will need to specify the number of general employees full time and part time

For further information on this area please refer to the General Employees section of our Annual information booklet.

If a practitioner changes status during the year, the Form 1A will need to be completed and returned to our office.

The following information may also apply:

1. The unused portion of the existing Contribution is rebated against the additional Contribution payable
2. No refund, pro rata credit or otherwise of the Contribution is payable by Law Mutual.

When a practitioner ceases work at a law firm or other entity, the employer must notify Law Mutual (WA) of the cessation date as soon as possible.

Information in relation to Principals retiring during the insurance year along with general enquires about practitioners ceasing employment can be found in our Annual Information Booklet.

If a legal practice undergoes a restructure or merger, Law Mutual (WA) must be notified in writing well in advance of the restructure/merger commencement date.

Special conditions apply with regard to restructures which may affect you. For further information please refer to our Annual Information Booklet – Restructure of Legal Practice.

Form A – Sole Practitioners and Partnerships – if you are classified as sole practitioner or partner for insurance purposes and you expect to be above the low fee earner threshold of $100,000 during an insurance year.

Form B – Low Fee Earners – if you are a sole practitioner or an incorporated legal practice and you estimate that you will earn less than $100,000 in gross legal fees for the entire insurance year. You will be entitled to concessional annual contribution rates based on your level of income. Conditions apply depending on who you can employ and discounts you are entitled to.

Form C – Incorporated Legal Practice – if your law practice is structured as an incorporated entity. An incorporated legal practice is a corporation (typically a company within the meaning of the Corporations Act) that provides legal services and that may provide other services in addition to legal services.

Form 1A – Additional Practitioner – when a practitioner joins or commences work at a firm during the insurance year other than renewal period.

Low Fee Earner – Statutory Declaration – An low fee earner must submit a statutory declaration to Law Mutual (WA) by 30 September following the end of the insurance year.

Notification of Exemption – if you are a practitioner who is entitled to an exemption pursuant to Regulation 97(1) (b), (c), (d), (e), (f) or (h).

Under the Legal Profession Act 2008 the Law Society of Western Australia is required to make professional indemnity insurance arrangements for practitioners and former practitioners.  Under the Legal Profession Regulations 2009, the Law Society is required to enter into professional indemnity insurance arrangements with one or more insurers for the provision of professional indemnity insurance for practitioners and former practitioners.

If your law practice does not have a professional indemnity insurance arrangements in place by 1 July each year, the Legal Practice Board will not be able to issue you, or the solicitors who work at your law practice, with a Practising Certificates for that year.

For renewing law practices, you will be advise by email that your renewal for the forthcoming year is due. This is usually in February and March, you will then need to submit a completed and signed renewal form applicable to your law practice.

If you are a new firm you will need to complete the respective application form and return to our office at least seven business days before the commencement date of insurance cover. For further information please refer to the New Law Practice commencing during an insurance year section above.

You can pay your premiums by:

Electronic Funds Transfer (EFT) – direct to Law Mutual (WA)’s bank account – this is most efficient method of payment as funds are usually cleared within two business days. Please quote the respective invoice number on each EFT payment to Law Mutual (WA). Payment details are provided on every invoice generated by Law Mutual (WA).

Cheques – please address to the Law Mutual Fund and mail to Law Mutual (WA). It can also be directly deposited into Law Mutual (WA)’s bank account over the counter at a branch of your banking institution. The funds are subject to clearance and this may take three to five business days.

Credit Card – To pay by credit card, the remittance advice section of each invoice will need to completed and sent back to Law Mutual (WA) for processing via an online credit card payment facility. Credit card payment instructions can be communicated to Law Mutual (WA) by phone, email or at its office. Funds are not immediately available to Law Mutual (WA) until remitted by the credit card merchant. This process can take up to two to three business days. Credit card payments also attract a processing fee of 1.5% of the invoice amount which covers merchant charges.

Premium Funding – Premium funding is a facility that improves cash flow by providing a cost effective monthly instalment option to pay your professional indemnity insurance premium. Applications will need to be submitted to the premium funding provider and may take some weeks depending on the funder’s assessment process. Information and quotations on funding can be sought from the following two more common providers.

• Marsh Premium Funding

To request a premium funding application, to fund payment for your professional indemnity insurance premium, please email your request to chelsea.furniss@marsh.com with your Law Mutual (WA) invoice.

Westpac Insurance Premium Finance

For general information on premium funding see Westpac Insurance Premium Finance. To request a competitive quote to fund payment of your professional indemnity insurance premium, please email your request to rindrisie@westpac.com.au along with your Law Mutual (WA) invoice.

Payment of Premiums

Law Mutual (WA) does not offer any instalment payment plans and cannot take cash payments. You will need to apply with a premium funding provider to fund your premium by instalments.

Regulations require law practices to pay their full annual contribution and administration levy by 15 May preceding the commencement of the Insurance Year (Regulations 83 and 88).

If this date falls on a weekend or public holiday, payment is due the next business day. Should payment not be made by 15 May of the relevant year, a 10% late lodgment fee will be imposed pursuant to Regulation 89(1) See Clause 6.8. The late lodgment fee will not apply provided any payment made by the 15 May is cleared within five (5) days thereafter.

We cannot receipt payments until the funds have cleared through our bank account. Once payments are fully receipted, a copy of the receipt will be emailed to the email address prescribed in the latest renewal application from the Law Practice.

The Legal Practice Board will be notified of compliance on the following business day after your payment is receipted.

Non Payment

Any law practice that does not pay its renewal invoice and late lodgment fees (if any) before 30 June for the next Insurance Year, will have its invoice withdrawn and cancelled effective as of 30 June and will have no insurance cover for the ensuing Insurance Year. Law Mutual (WA) may, at its absolute discretion, reinstate the invoice and accept a payment on or after 30 June.

In the unlikely situation where an existing law practice continues to practice into the next Insurance Year without having either applied for or paid for insurance then:

1. until a Certificate is issued, the Law Practice will be practising in contravention of the Legal Profession Act 2008;
2. The Law Practice, its Principals, Directors and its Employees will be uninsured, and
3. The Law Practice may not be able to recover its professional fees.

Law Mutual (WA) is not obliged to offer cover for the following Insurance Year if the Law Practice has not paid any outstanding invoices by 15 March (Regulation 91).

Information can be found in our annual information booklet based upon your classification, criteria and circumstances. If you require further information regarding an insurance quote, you can contact Law Mutual (WA) on (08) 9481 3111 or email info@lawmutualwa.com.au

From the 1st of July 2016 the Law Society administers the submission of the Notification of Exemption Forms. An administration Levy of $75 (inclusive of GST) is chargeable to each practitioner to cover the costs of processing Notifications, as it is entitled to do so by Regulation 102 of the Regulations.

However, the charge will be waived for the following categories of practitioners:

• Financial members of the Law Society of Western Australia
• Employees of a Community Legal Centre, Legal Aid Commission and Aboriginal Legal Service (as defined in the Legal Profession Act 2008 and prescribed in Schedule 2 of the Regulations)
• Those claiming exemption under 97(h)

Please complete and submit an online notification of exemption form.

You will need to notify Law Mutual (WA) as soon as possible when there are changes to your firm or you need to complete a new application form.  For more information please visit the New Applications or request for changes during an insurance year section above.

Please note: the Certificate of Insurance cannot be cancelled and is not transferrable.

If Law Mutual (WA) was notified before 30 June in that respective insurance year of a partner/director or an employed practitioner leaving a law practice, a refund may be provided if a practice certificate has not been issued for forthcoming year.  No refunds are payable by Law Mutual (WA) where notification is received after 30 June of the respective insurance year.

No refunds are paid for employed practitioners, partners or directors who leave the firm after 30 June of the respective insurance year. For more information on refunds, please refer to our annual Information booklet.

Regulation 89 of the Legal Profession Regulations 2009 imposes a late lodgement penalty of 10%, where law practices have not paid the insurance contribution by the annual 15 May deadline. The Law Society can waive payment of the late lodgement fee in whole or part at its discretion.  It has developed a policy to ensure fairness and consistency in the exercise of this discretion.

Law Mutual (WA) is not obliged to backdate cover; this remains a discretion to be exercised by us in appropriate circumstances.

The Law Mutual (WA) policy only covers legal work that you undertaking in those role. Any non-legal work is not covered.  You will need to determine if the work undertaking in these roles is legal work. The definition of Legal work can be found in the Legal Profession Act 2008.

The title ‘consultant’ is used in many different contexts by lawyers and does not necessarily refer to an independent contractor who is providing consultancy services to the law practice. Under the Law Mutual (WA) professional indemnity insurance arrangements, a consultant who is determined by us to be an employee of a law practice is covered, whereas an independent contractor is not.

Typically, an independent contractor will be an individual who is not supervised, whose contact with clients is not controlled and whose work is not authorised by the principals or management of the law practice.

For more information on consultants and professional indemnity insurance arrangements, please refer to our annual Information booklet.

The Legal Practice Board will be notified electronically on the following business day after your payment has been cleared and receipted.

Law Mutual (WA) has no responsibility over the issuing of Practising Certificates. You will need to contact the Legal Practice Board directly in respect to practising certificates on (08) 6211 3600.

• the Legal Practice and each Partner in the Legal Practice shown in the Schedule for attachment to the Certificate and each former Partner;
• each predecessor of the Legal Practice and each Partner in each predecessor of the Legal Practice;
• each person employed or engaged, or previously employed or engaged, on a paid or unpaid basis, in connection with the Legal Practice or predecessor of the Legal Practice, including any trainee, volunteer, part-time, seasonal, temporary, or work experience personnel, a practical legal trainee, or legal practitioner performing Restricted Legal Practice for the purpose of attaining Required Experience, but not including a Consultant;
• each Consultant provided that: a. at the time of any act, error or omission giving rise to a Claim, the Consultant was under the direct control and supervision of the Legal Practice or predecessor of the Legal Practice or a Partner of the Legal Practice or partner of the predecessor of the Legal Practice; b. the act, error or omission giving rise to the Claim occurred in the course of or arose out of the services provided by the Consultant pursuant to the Consultant contract.
• the estate or the legal representatives of each person included in paragraphs 1, 2 and 3; and
• each service or administration company or trust connected with the Legal Practice to the extent that its activities are carried out exclusively in connection with the Practice.

Up to the Limit of Liability (currently $2,000,000 and $1,500,000 for 2007/2008 and years prior) for:

• any amount payable by the Insured to a Claimant (including Claimant’s Costs) in respect of any kind of civil liability incurred in connection with the Practice for any Claim first made against the Insured during the Period of Insurance; and
• Related Costs with respect to that Claim.

• a liability which arises out of facts or circumstances that might give rise to a Claim that were notified to an insurer or a mutual fund prior to the Period of Insurance;
• a liability which arises directly out of facts that might give rise to a Claim of which the Insured was aware or ought reasonably to have been aware before 1 July 1995 or in the case of a Barrister, before 30 June 2010;
• a liability which arises directly out of an act or omission of a Practitioner who is not a Partner in, an employee of, or directly contracted by, a Legal Practice located wholly or partly in Western Australia;
• a liability which arises directly or indirectly out of the Insured acting as a public officer, company director, company secretary or other company officer (other than a claim arising from the Legal Practice’s provision of legal services through any of its directors or officers who are Practitioners);
• the Insured’s Contribution;
• the contribution by the Law Society out of the Law Mutual Fund pursuant to clause 3.2 of the Master Policy or by the Insurers pursuant to clause 4.2 of the Master Policy;
• a liability which arises directly or indirectly out of the performance or non-performance of a contract other than a contract by the Insured to provide legal services in connection with the Practice;
• a liability to repay to a client fees or disbursements (other than the fees of experts and counsel) charged by the Insured to the client;
• a liability for costs incurred by the Insured in relation to a dispute about fees or disbursements charged by the Insured to a client;
• a liability for damages for death or injury other than mental distress or anxiety arising out of legal services provided by the Insured in connection with the Practice;
• a liability for physical loss or damage to property, unless the property was in the care, custody and control of the Insured in connection with the Practice and for which the Insured is responsible, not being property occupied or used by the Insured for the purposes of the Practice;
• the payment of a trading debt incurred by the Insured;
• a liability brought about by the dishonest or fraudulent act or omission of an Insured, but this exclusion will not apply to:
  • the liability of an Insured or former Insured not engaged in or knowingly connected with the dishonest or fraudulent act or omission, where the dishonest or fraudulent act or omission occurred after 30 June 1999; or
  • a liability brought about by the dishonest or fraudulent act or omission of a person employed in connection with the Practice.
  • and
  • this exclusion shall only apply once the dishonesty or fraudulent act or omission has been established by express admission, court judgment or other final adjudication;
  • the provisions of clause 12 of this Certificate will apply;
  • notwithstanding subclauses 2.1.13.1 and 2.1.13.2 above, the Insurers shall not be liable to indemnify the Insured for any amount payable under a Guarantee Fund or analogous fidelity fund, nor for any Claim made by any Guarantee Fund or analogous fidelity fund;
• a liability for any:
  • fine;
  • civil penalty;
  • punitive, exemplary, aggravated, additional or like damages; or
  • costs or expenses incurred or ordered to be paid by an Insured in connection with a complaint against, or investigation into, the professional misconduct of an Insured;
• a liability directly or indirectly caused by or contributed to by, or arising from, ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel;
• a liability directly or indirectly caused by or contributed to by, or arising from, the radioactive toxic explosive or other hazardous property of any explosive nuclear assembly or nuclear component;
• a liability which arises from war, invasion, acts of foreign enemies, hostilities (whether war is declared or not), civil war rebellion, revolution, insurrection, military or usurped power;
• a liability for any costs awarded against an Insured where the Insured is not a party to proceedings, but is acting on behalf of a party to proceedings;
• a liability incurred by an Insured in his or her capacity as an insurance agent;
• a liability arising out of death, injury, illness, loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with:
  • an Act Of Terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss; or
  • an action in controlling, preventing, suppressing, retaliating against, or responding to any Act Of Terrorism;
• a liability arising out of an actual or alleged liability whatsoever for a Claim in respect of loss or losses directly or indirectly arising out of, resulting from or in consequence of, or in any way involving asbestos, or any materials containing asbestos in whatever form or quantity other than where such liability is in relation to provision of professional services as a legal practitioner;
• any Claim directly or indirectly based upon, attributable to, or in consequence of insolvency, bankruptcy or liquidation of an Insured;
• a liability in relation to a dispute between:
  • the Partners;
  • shareholders of the Legal Practice if it is an Incorporated Legal Practice; or
  • Partners and shareholders of the Legal Practice if the Legal Practice is an Incorporated Legal Practice;
• a liability in relation to an employment related dispute brought by an employee of a Legal Practice against the Insured;
• a liability which arises directly or indirectly out of an Insured being:
  • an Exempt Practitioner or a Partner or employee of an Exempted Firm;
  • a Partner or employee of a Legal Practice conducted in Western Australia and at least one other State or Territory prior to or during the Period of Insurance, if the Insured is entitled to claim under another mutual fund or insurance policy for the same liability, and such liability arose predominantly from an act or omission committed by a person or persons who was or were, at the time of the act or omission:
    • residing in; or
    • a resident or residents of, a Territory or State other than Western Australia.

An Insured must give written notice of a Claim first made against the Insured during the Period of Insurance as soon as reasonably practicable after the Claim is made. It is also prudent and Insureds are strongly urged to notify Law Mutual (WA) of any circumstances that might give rise to a claim against the Insured.

If you have any queries in relation to notifications of circumstances or Claims, please call the Manager –Claims on (08) 9324 8626.