Legal Resource Guide

A real concern across Canada is access to justice — that is accessing legal services where and when you need them. A key barrier is the cost; lawyers can be expensive, particularly in complex situations that require more of their time. A relatively new Canadian initiative is legal expense insurance, designed as a way for people to get the help they need, particularly when they don't anticipate that need. "This is for ordinary people who will face a legal problem for which they will seek help from a professional," says John Sims, chairman of the Canadian Bar Association's access-to-justice committee. "We live in a law-thick world, the law is everywhere." The CBA, an association of lawyers across the country, has identified legal expense insurance as an important tool to help Canadians get access to justice when they need it. In its report "Reaching equal justice: An invitation to envision and act" earlier this year, the CBA called for the development of more of these policies. It has partnered with DAS Canada, which arrived in Canada in 2010 after getting its insurance licence from the Financial Services Commission of Ontario to offer policies here. The CBA set a target of 75 per cent of Canadians to be covered by legal expense insurance by 2030. Although, its report notes there will always be limitations. For instance, currently legal expense insurance doesn't extend to family law issues. The idea is to buy the insurance through monthly or annual premiums. It will allow access to lawyers for certain levels of advice or representation on a legal issue. This approach is popular in Europe and provides basic access to legal assistance for people who can afford to buy the insurance, often done in conjunction with home insurance or tenant insurance policies. In some countries it is mandatory. The CBA has joined with the insurer DAS Canada, in an initiative to promote the insurance, following on the heels of a similar program in Quebec where an estimated 10 per cent of households carry insurance for legal coverage, often through a rider in their home insurance. Like most insurance, legal expense insurance is usually purchased before something happens. And like most types of insurance, it covers unanticipated activity, in this case of a legal nature. The policy sees an insurer pay the legal costs arising from certain legal situations and it would support legal services by lawyers and paralegals. The result is if a legal situation arises, the policyholder will have access to legal representation, paid for by the insurer. The point of the insurance is to protect against large legal bills and to mitigate problems. In Quebec, where it is co-ordinated through the province's law society, legal expense insurance is commonly purchased by families to cover "[Legal expense insurance] is for ordinary people who will face a legal problem for which they will seek help from a professional. We live in a law-thick world, the law is everywhere." issues like criminal charges, disciplinary action, human rights complaints, employment disputes, and litigation. Coverage can also be extended to cover predictable issues, including wills and powers of attorney. "We're pretty far behind compared to other places," says Trevor Farrow, a professor at Osgoode Hall Law School. He points to Germany where an estimated 50 per cent of households carry legal expense insurance. He cites statistics that indicate about half of us are expected to encounter a legal problem over a three-year period, particularly in civil and family law issues, sometimes resulting in "crippling legal bills." The CBA's push on legal expense insurance, he adds, is one of the menu items the profession has adopted to address concerns about access to justice. "There's a big gap between what we need and what we can afford, and that gap is growing," says Farrow. Although Canadians are entitled to justice, affordability can be a barrier. Legal aid is not available to most people because its income levels for qualification are very low. The CBA is approaching the concern of access to justice on a number of levels, understanding that insurance is not the panacea. "There's a lot of things that need to change, but we certainly think legal expense insurance is a valuable thing for people to consider," says Sims. 15

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