Queensland Law Society scheme set to cap liability

The Professional Standards Council has approved a Queensland Law Society scheme that will protect members from uncapped damages claims.

The Society has been working since 2006, pursuant to the Professional Standards Act 2004, to develop the proposal and gain approval for the scheme.

The scheme, to begin on 1 July 2010, will cap liability at either $1.5 million or $10 million, depending on the number of principals and total fees generated. If required by a member, a higher cap can be specified in consultation with the Society.

Queensland Law Society CEO Noela L’Estrange said the approval of this scheme is good news for Queensland Law Society members.

“The scheme’s main benefits come from both providing peace of mind, and removing the need, for most, of top-up insurance above the $2 million currently provided by Lexon Insurance,” Ms L’Estrange said.

“Firms will need to review their own arrangements and decide whether they want to join the scheme, but for the majority of firms, the opportunity to limit liability should be an attractive prospect.”

“The scheme provides greater certainty for members with professional indemnity insurance on the scope of their liability and more flexibility in their top-up insurance needs,” Ms L’Estrange said.

“Clients can also have greater confidence in the firms they use, knowing that they comply with professional standards and risk management arrangements approved by the independent Professional Standards Council.”

To gain approval for the scheme, it was necessary for the Professional Standards Council to be satisfied that Society members are subject to risk management controls including continuing professional development, quality assurance, disciplinary systems, mandatory professional indemnity insurance, codes of conduct and the maintenance and audit of trust accounts.

Who can participate in the scheme?

Full members of the Society who hold current practising certificates will be able to participate in the scheme, and practice employees will also be covered provided all solicitors in the practice are members of both the scheme and the Queensland Law Society. Members will have the opportunity to sign up to the scheme through the annual Queensland Law Society membership renewals process commencing next month.

More information and guidance is available at qls.com.au. Please contact Queensland Law Society’s practice management specialist Giles Watson at g.watson@qls.com.au if you have any questions about the scheme.