March 27, 2020
Cash Flow Relief: First Levy Instalment for 2020-2021 Reduced to $500
In response to the anticipated financial impacts of the COVID-19 pandemic, the Executive Committee of the Law Society of Alberta (“Law Society”) requested that the Alberta Lawyers Indemnity Association (“ALIA”) look at ways to address the impact of this crisis on the legal profession. With the full support of ALIA’s Executive Committee, acting in the capacity of ALIA’s Board, ALIA has implemented a one-time option for its indemnified lawyers to pay a nominal portion of the levy in the first instalment. 

As was the case previously, there will be two options for payment of the annual base levy: one lump sum payment, due June 30, or two instalments, the first due June 30 and the second due December 31. 

The significant change for the upcoming 2020–2021 levy is that the first instalment will be only $500 instead of half of the base levy, as was required in previous years.


How much is the 2020–2021 levy?
The amount of the 2020–2021 levy will be set by ALIA’s Board in late April 2020.

What if I have a claim before the second instalment is due?
ALIA continues to provide you with indemnity as it would have if you had paid in equal instalments; your coverage remains the same.

Does the $500 instalment cover both Part A and Part B?
Yes, it covers both Part A (negligence coverage) and Part B (misappropriation coverage).

Does this cash flow relief also apply to surcharges? 
No, this cash flow relief only applies to the base levy; the surcharge program is unaffected and surcharges will continue to be paid in two equal instalments where the instalment option is chosen.

Does the $500 instalment include the standard $50 administrative fee?
Yes, it does. The other $450 will be applied to your levy, with the balance of the full levy due by December 31, 2020.

Does the $500 instalment include GST?
No, GST is payable on each of the amounts.

When will I receive my levy invoice?
You can expect to receive communications regarding the levy invoice around mid-May.
Cyber Risk Implications of the Coronavirus Outbreak
A critical measure in managing the spread of COVID-19 is physical, or social distancing, which for many organizations includes mandating or encouraging staff to work from home. In many cases, this is done on very short notice and requires staff to become more vigilant in protection of assets against would-be attackers and scams.

It is always important to take precautions, although when working remotely it can be easy to operate in a more relaxed manner, which may lead to increased exposure to potential cyber threats or attacks. It is important to continue with protocols and protections staff would adhere to in their regular office setting.

Click here for an article on cyber risk implications kindly provided to ALIA by its broker, Aon Reed Stenhouse (“Aon”).
Annual General Meeting Update
Each year, the Alberta Lawyers Insurance Exchange held its annual general meeting (AGM) in conjunction with the Law Society’s. Subscribers were entitled to attend. Subscribers are not entitled to attend ALIA’s AGM, and given the impact of COVID-19, ALIA has decided not to invite Subscribers to attend this year. ALIA expects to post its annual financial statements to its website once they are completed and approved by the Board later this spring.
Claims Processing
Although ALIA’s offices are physically closed until further notice, we are conducting business as usual, albeit remotely, and are continuing to process claims.

To submit claims information or claims queries, please contact ALIA by email.
ALIA does not provide legal advice. ALIAdvisory notices, ALIAlerts and the content on ALIA’s website, notices, blogs, correspondence and any other communications are provided for general information purposes only and do not constitute legal or other professional advice or an opinion of any kind. This information is not a replacement for specific legal advice and does not create a solicitor-client relationship. 

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