From 11/10/2017, the mandatory PI requirements for lawyers cover:
- Every damages (pecuniary and non-pecuniary, indirect, permanent, temporary and future);
- Gross negligence of the insured + negligence, gross negligence and wilful misconduct of collaborators of the insured;
- Claims from clients and third parties in general;
- Claims arising from loss of documents/money/securities; and
- Joint/several liability of the insured with others, without prejudice to the insurer’s recourse action.
In addition, the policy will:
- be unlimitedly retroactive;
- provide for a discovery period of no less than 10 years in case of cessation of the insured’s activity during the policy period; and
- not provide for termination clauses in case of notification of claims or payment of an indemnity.
The minimum limits vary according to the firm’s turnover and number of professionals:
- Single practitioners -turnover below €30 – policy for at least €350,000 per claim, per year;
- Single practitioners – turnover between €30,000 and €70,000 – policy for at least €500,000 per claim, per year;
- Single practitioners – turnover higher than €70,000 – policy for at least €1 million per claim, per year;
- Law firms with max 10 professionals and a turnover lower than €500,000 – policy for at least €1 million per claim and €2 million per year;
- Law firms with max 10 professionals and a turnover higher than €500,000 – policy for at least €2 million per claim and €4 million per year; and
- Law firms with more than 10 professionals – policy for at least €5 million per claim and €10 million per year.
These figures will increase by 25% according to Article 1917 to cover the defence costs of the insured.