CLEI for Property Management Corporations
Legal Expense Insurance provides protection for specific issues that are not ordinarily covered by your commercial liability policy.
Legal Expense Insurance for Property Management
The coverage relates to matters that can affect all companies and where having the ability to seek legal advice may prevent a matter becoming an expensive and time consuming issue. Most small to medium sized business do not have in-house counsel and this cover provides you with peace of mind knowing that a lawyer is readily accessible to provide you with advice, and if necessary to represent you.
Summary of Coverage
Contract Disputes – relating to goods and services, e.g. disputes with customers/suppliers.
N.B. Legal fees and expenses are limited to 75% of the amount in dispute. The sum in dispute must exceed $5000. Debt collection is excluded.
Employment Disputes – e.g. defence against wrongful dismissal charges, discrimination.
N.B. There is a ninety day waiting period from inception of the policy before this section of coverage takes effect. You are required to contact the TLA service for all employment issues and you must follow the recommendations given.
e.g. Criminal Code (Canada), Occupational Health and Safety Act.
e.g. landlord and tenant disputes, nuisance and trespass.
Death or bodily injury sustained away from the workplace but while engaged in business activities.
N.B. This coverage extends to any employee acting within the scope of their employment.
Tax Disputes – defence of a Tax Audit arising out of any tax return. Preparation of tax return is excluded. An accountant will provide assistance.
Complaints and Disciplinary Proceedings (by Endorsement)
Defence of Complaints and Disciplinary proceedings pursuant to s.57 and s.58 of Part V of the Condominium Management Services Act 2015, including any appeal therefrom.
- Actions against Underwriters, STERLON or the broker
- Judicial Review
- Pre-existing matters
- Legal and professional fees incurred prior to approval
- Employment disputes occurring within the initial 90 days of coverage (first term only)
- Debt recovery
- Preparation of tax returns
- Application or renewal of license under the Condominium Management Services Act 2015
- Your broker will provide you with the per claim and annual aggregate limits
- Reasonable legal and professional fees (at a rate of up to $400/hour) and disbursements
- Legal proceedings must commence in Canada
- $500 deductible any one claim (not applicable to TLA)
- 10% co-insurance for legal fees in excess of $10,000
- No payment for awards, damages, fines or penalties
- Endorsement cover is rated on the number of Property Managers for which cover is sought