Law Times

PAGE 10 Small firms often lack sufficient disability, critical-illness coverage FOCUS Insurance tips for lawyers BY DARYL-LYNN CARLSON For Law Times F or smaller law firms in Ontario, it can be a chal- lenge to determine how much insurance is adequate for lawyers and their staff. Most large firms have attrac- tive benefits for their employ- ees as an incentive to prevent staff turnover, but smaller firms often don't have ample cover- age, if any at all. Yet one of the most impor- tant policies lawyers at smaller firms should have is insurance coverage for disability or criti- cal illness, particularly consid- ering the stress related to prac- tising law. Peter Harrison of the Cana- dian Bar Insurance Association (CBIA) in Ottawa says most lawyers at smaller firms don't have enough coverage in the event they're Ontario Lawyer's Phone Book 2011 Your most complete directory of Ontario lawyers, law firms, judges and courts With more than 1,400 pages of essential legal references, Ontario Lawyer's Phone Book is your best connection to legal services in Ontario. Subscribers can depend on the credibility, accuracy and currency of this directory year after year. More detail and a wider scope of legal contact information for Ontario than any other source: • More than 26,000 lawyers • More than 9,300 law firms and corporate offices • Fax and telephone numbers, e-mail addresses, office locations and postal codes Lists of: • Federal and provincial judges • Federal courts, including a section for federal government departments, boards and commissions • Ontario courts and services, including a section for provincial government ministries, boards and commissions • The Institute of Law Clerks of Ontario • Small claims courts • Miscellaneous services for lawyers Contact information that is current, up to date and easy to find: • Alphabetical tabs on every page for quick reference • Complete address information in every lawyer's listing • Special binding that allows the directory to lay flat when opened and stay flat • "Blue pages" to highlight government listings ORDER your copy today Perfectbound • December 2010 On subscription $66 P/C 0514140999 One time purchase $69 P/C 0514010999 • ISSN 0845-4832 (Please add 13% HST) injured or be- come ill. "Disability insurance is the most important policy for lawyers, but many don't have enough coverage," says Har- rison. "But if they get sick or injured, how will they replace their income?" According to Harrison, most lawyers who do have a benefit package through their law firm don't even know how much dis- ability coverage they have. At the same time, many policies fall short of what they would need in the event of illness. "With benefit plans, in my opinion, the long-term disabil- ity programs are perhaps inad- equate in terms of the quantity and quality of coverage," he says. "Law firms and individu- als should make sure they're well covered in this area." Many lawyers at smaller firms and sole practitioners rely on their spouse's insurance benefits, although they wouldn't be cov- ered for long-term disability in the event of an injury or illness. In addition, such plans don't provide life insurance coverage for spouses, Harrison notes. Through the CBIA, which is For a 30-day, no-risk evaluation call: 1.800.565.6967 Canada Law Book, A Thomson Reuters business. Prices subject to change without notice, to applicable taxes and shipping & handling. OLPB_2011 LT-1/4pg 3X.indd 1 HA1210 11/4/10 10:51:02 AM underwritten by Manulife Finan- cial, lawyers at smaller firms with up to nine practitioners as well as sole practitioners can either top up their insurance policies or pur- chase a benefit plan if they don't have one. They can also maintain their coverage if they leave the profession. "Lawyers come to us when they don't have a plan or need to improve their plan," Harri- son says. For example, he says lawyers earning $200,000 annually may, under many typical poli- cies, only be covered through their disability or critical-ill- ness insurance to a maximum of $3,000, which is startlingly low. "Even if they have a group plan, the benefits can be very low, so we can supplement the quantity and quality of the cov- erage that they might have in a group plan," says Harrison. He also says it's often the case that when lawyers leave a large firm for a smaller one, they don't necessarily investi- gate the benefits and insurance to ensure they have ample cov- erage. "Because it's such an im- portant insurance program to have, people should be up to speed in what they have so they can at least make an informed decision," says Harrison, add- ing he's continually surprised at how many lawyers at small law firms don't have adequate insurance coverage. Still, he acknowledges the issue isn't necessarily a prior- ity. "It's so commonly put at the bottom of the priority list because lawyers are busy being lawyers," Harrison notes. Tamara Adamson, president Finding & Managing Legal Information on the Internet David Whelan Become a more powerful online researcher with this helpful and practical guide In print and PDF format plus a related blog at http://fli.canadalawbook.ca This is a practical guide for lawyers, judges, law librarians, law students and anyone else interested in finding information online faster and managing it better. Get tips that will help you find both law and related business information faster. This text will also help you stay on top of technological trends, monitor current awareness resources and organize your research for quick retrieval in the future. Learn more about: • Available in PDF format and/or print A networkable version is also available. Call for more information Order your copy today Perfectbound • 188 pp. • May 2010 • $32 P/C 0992010000 • ISBN 978-0-88804-506-5 Non networkable PDF download • $32 P/C 0992010001 • ISBN 978-0-88804-507-2 Networkable PDF download • $128 P/C 0992010002 • ISBN 978-0-88804-507-2 Get guidance from an expert The author, David Whelan is the Manager of Legal Information at The Law Society of Upper Canada. He has spent his career working with information and technology. Learn to manoeuvre through online content faster and manage it better with this practical guide. legal information sources • browser extensions, free add-ons and plug-ins • staying on top of changing information with RSS and other tools • research organization and retrieval • mobile legal research …and much more! of Link Insurance & Financial Services Inc. in Richmond Hill, Ont., agrees that many lawyers with smaller firms often don't have enough coverage through their benefit packages. Accordingly, her com- pany provides lawyers with a 25-per-cent discount for dis- ability insurance and a 10-per- cent discount for critical-illness coverage. "We know that many lawyers don't think about insurance and so they might not have enough coverage," she says. Link insures individual law- yers and also offers a program for sole practitioners who left a larger firm that includes group coverage in which they can purchase their own policy without a medical report. The company's critical- illness program provides a lump-sum payment of between $50,000 and $2 million tax- free in the event of a diagnosis of one of 25 diseases. "We have tried to tailor our coverage for lawyers as we know they have specific needs," says Adamson. She adds that the company canadalawbook.ca For a 30-day, no-risk evaluation call: 1.800.565.6967 Canada Law Book, a Thomson Reuters business. Prices subject to change without notice, to applicable taxes and shipping & handling. LT1129 www.lawtimesnews.com provides all means of insurance for lawyers beyond disability and critical-illness policies. Link's insurance coverage is provided through RBC Insur- ance Services Inc. LT November 29, 2010 • Law Times Multiple copy discounts available

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