Yes. The LIV has discretionary authority, upon application by a Scheme participant, to specify a higher maximum liability cap than would otherwise apply – see clause 4 of the Scheme.
Assessing liability caps requires a combination of actuarial, legal and professional expertise. Therefore, to enable the LIV to properly exercise the discretion, it will have regard to a range of information about the law practice and the basis for the higher cap application, including:
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the law practice’s insurance claims data
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the law practice’s existing risk management framework
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evidence of the law practice’s insurance or sufficient business assets to meet the higher cap, in the event of a successful claim
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whether the higher cap is intended to apply to all of the law practice’s clients and transactions, or a subset of clients or transactions
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the period of time that the higher cap will be in place
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other relevant information.
To apply for a higher maximum liability cap under the Scheme, please complete an Application for a higher cap 2016/17 and, attaching all relevant evidence in support, return it to compliance@liv.asn.au.