Canadian businesses are embracing Legal Expense Insurance (LEI) as a way to resolve their legal disputes. As awareness of LEI has grown and more of our customers use their policy to defend or pursue their legal rights, we are required to make our first notable premium increase in five years.
Please note the premium increase only applies to the DASbusiness policy, and does not affect our DAStransport policy or our group and association offerings.
The following pricing changes are effective for all new DASbusiness
policies and renewals:
: July 1st
, 2016 for new business, and September 1st
, 2016 for renewals
- An average of 25% increase applies to all premiums
- The minimum premium required is $350.00 without the Contract Disputes and Debt Recovery coverage and $600.00 with the Contract Disputes and Debt Recovery coverage
: August 8th
- As the Contract Disputes and Debt Recovery coverage is our most popular and most expensive element of coverage, a $2,500 deductible will apply if the dispute cannot be resolved by DAS and requires an appointed representative.
For example, a property manager had to hire emergency restoration services for one of the units in the building they manage. As the unit owner was new to Canada, he did not realize that it was his responsibility to pay for such repairs and he did not have the personal property insurance to help cover the costs. Rather than incurring the cost of a small claims lawyer and putting the property manager in a position where he would have to pay a $2,500 deductible, our Claims Adjuster wrote a polite, but firm, demand letter to the debtor. As a result, the amount owed was recovered and the claim was closed without the need to resort to costly litigation.
Unlike other deductibles, the $2,500 is only payable if our Claims Adjuster is not able to resolve the contract and/or debt recovery dispute on their own. To keep the process as simple as possible, the $2,500 will be paid directly by your client to the panel law firm, rather than to DAS.
These changes are based on overall DASbusiness
claims experience and related costs. Please note that in order to be in line with the Consumer Price Index, your clients’ payroll and revenue figures will also be increased.
To ensure our services and coverage meet your clients’ expectations, we periodically review our products and make adjustments. That is why we have revised our policy wordings, making them clearer and easier to understand for your clients. Please refer to the table below:
1. Under Contract Disputes and Debt Recovery (optional coverage):
2. Under Legal Defence sections (4 through 6), Canadian Anti-Spam Legislation (CASL) coverage has been added to the policy
- A $2,500 deductible is required if the dispute cannot be resolved by DAS and requires an appointed legal representative to handle
- The original exclusion (g) relating to claims arising from the provision of computer hardware, software or services has been removed
- Exclusion (d) has been revised to allow claims for a dispute relating to a commercial lease, if your client is the tenant
3. Under Employment Disputes section (2), clarification of coverage is provided with respect to disputes with staff or ex-staff under a collective bargaining agreement
1. Under Contract Disputes, we deleted the original provision (i) which required an insured to have entered into a contract after the inception date of their DAStransport policy in order to make a claim
Our mission is to increase access to justice for all Canadians. We strive to fulfil our promise of protecting individuals and businesses from costly legal expenses, empowering them to defend or pursue their legal rights. Should you have any questions about these policy wording or premium changes, please contact your DAS Broker Consultant.
To learn more about the value of LEI and to read about our latest customer stories, please click here