FAQ - Premiums
Search the following list for the the most commonly asked questions on LPLC premiums
Do I get a refund for my employee if they leave at any stage after the assessment date?
You only get a refund if they leave to go to a firm or an organisation not insured with the LPLC.
If you are not replacing the employee, it is up to you to negotiate with the employee's new employer regarding reimbursement for the time they are with the new firm until the end of the insurance year.
In turn, you are not required to pay a further premium for any employee solicitors that you employ after the assessment date.
Do I have to pay a premium for an employee if they start after the assessment date?
No
Do I have to pay any extra premium if one of my employees changes status to a partner during the insurance year?
Yes. Any employee who changes their status to that of a principal will need to have their insurance upgraded to principal level. This will require the difference in the premium between an employee and a principal to be paid.
Of course, this is calculated on a pro rata basis taking into account what has already been paid as an employee, providing the employee levy has been paid by you. The reverse applies if one of the principals retires, and is then employed as a consultant and wishes to change his or her practising certificate to an employee certificate.
What if I cease to be a partner and become a consultant of the firm?
Consultants are treated as employees for the purpose of professional indemnity insurance. The firm will receive a pro rata refund for the difference between the contribution for a principal and the contribution for an employee solicitor. The firm will then continue to pay an employee contribution for you each year.
As a consultant you may still retain your full practising certificate, but you will need to contact the LPLC to be registered as a sole practitioner; you will also be required to pay the nominal premium applicable to a practitioner wishing to hold a full practising certificate and earning NIL fees in private practice.
Do I get a refund if I retire at some stage during the insurance year?
Yes. A refund is applicable as long as you are retiring from private practice and do not maintain your practising certificate.
What if I am a low fee earner or starting up a practice for the first time where I employ other practitioners?
A reduced premium scale is available to low fee earners. This scale is set out in the premium structure section of this website. The scale is restricted to sole practitioners without employee practitioners and whose gross fees do not exceed $100,000 per annum.
Practitioners making application for reduced contributions will in all cases be required to make an estimate of their gross fees for the 12 month period, the estimate being checked by the requirement of a statutory declaration as to the gross fees earned during the preceding six months. Gross fees for that period will be assumed to be a true indicator of the total figure for the 12 month period and the contribution adjusted up or down accordingly.
If you are starting up practice for the first time, and you start with a partnership of say two or three partners for the first year of practice, the Committee will allow each partner to apply for the reduced premium contribution according to what they think they will earn in gross fees for the year.
If I share an employee with another practitioner, who pays the premium?
The full employee contribution is not payable by both employers of the shared employee. An adjustment should be made between yourselves so that only one employee contribution is paid.
What insurance do I need to work as a locum?
If you intend to practice as a locum you should take out a full practising certificate and apply for a reduced contribution if your estimated earnings, excluding earnings in a true temporary locum tenens situation (where you are replacing a principal or employee practitioner during temporary absence) are below $100,000 per annum.
If I pay the contribution applicable to a criminal advocate can I do work in other areas?
If you wish to handle a one off file that is not criminal advocacy work, you need to contact the LPLC to give details so that appropriate arrangements can be made to adjust your insurance contribution.
Key contacts
Bernie Mallia
+61 3 9672 3800
bernie@lplc.com.au
Terri Twining
+61 3 9672 3800
terri@lplc.com.au