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A member of the DAS Group
An Introduction to DASbusinessApril 2015
This presentation is for training purposes only. For full details of coverage, including any conditions and limitations, please read the DASbusiness policy wording.
DAS Canada
Session Objective
Our objective is to help you understand:1. Common legal risks facing business owners2. DASbusiness value prop3. Elements of coverage & claims examples4. Claims process 5. Pricing & limits of indemnity6. How to start the conversation with clients
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DAS Canada
In Canada there are …
Sources: Statistics Canada, CANSIM Table 551-0006 as of June 2014 & CANSIM Table 282-0012 as of YE 2013
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1.2 millionSmall businesses (with 1-99 employee’s)
2.7 millionSelf-employed Canadians
DAS Canada
Of All Those Business Owners…
Personally know another business owner who lost their business due to a legal dispute
Source: 2015 DAS Canada & Ipsos Small Business Owner Research
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DAS Canada
Hiring & firing staff Wrongful dismissal action
Signing contracts & making deals
Contract disputes with suppliers &/or customers
Maintaining an office or job site
Property damage, trespassing or bodily injury
Adhering to ever-changing government regulations
Investigations by government regulatory boards
Maintaining licensing requirements
Statutory license revocation
Keeping the tax man happy Tax audits by the CRA
Common Legal Risks
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DAS Canada
Over The Past 3-Years….
Business owners faced a legal dispute whereby they & the other party engaged lawyers to resolve
Source: 2015 DAS Canada & Ipsos Small Business Owner Research
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DAS Canada
You own a retail business with two locations … Your lawyer advises you have a reasonable chance of being
awarded $35,000 to recoup costs associated with a supplier failing to deliver merchandise in a sellable condition & on-time However, it would take 18 months and cost $15,000 in legal
fees. Also, you may face adverse costs if you lose your case, so the total potential bill could be $30,000.
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What Would You Do?
A. Walk away?B. Cut back operating expenses?C. Take a profit hit?
DAS Canada
The Value Proposition
We empower business owners when they face unforeseen legal issues. A DASbusiness policy:
Allows your clients to defend or pursue their legal rights
Protects your clients from costly legal expenses
Gives them unlimited access to legal advice at any time
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DAS Canada
When Going To Court …
Of business owners did not have legal representation when going into court to resolve a
legal dispute
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Source: 2015 DAS Canada & Ipsos Small Business Owner Research
DAS Canada 10
The Financial Impact Of Going To Court
$379Per hour for an experienced lawyer
$37,000For a two-day civil action
Adverse costsIf a judge orders your client to pay the other party’s legal fees
Sources: : 2013 Canadian Lawyer Legal Fees Survey – Canadian Lawyer Magazine
DAS Canada
Employment Disputes
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DAS Canada
We will pay your client’s legal costs to defend their business in disputes related to: The dismissal of an employee An employment contract with an employee or ex-employee An alleged breach of statutory rights of an employee or
ex-employee
Employment Disputes
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DAS Canada
Scenario: Kate is a DAS policyholder who was sued for wrongful dismissal by
one of her ex-employees. The former employee alleged he had been discriminated against and was seeking $40,000 in damages. Kate was depressed, as she knew her business could not afford to pay $40,000
Resolution: Kate called DAS and a claim was opened. A DAS panel lawyer
negotiated with the former employee, who in the end agreed to drop the case. Thanks to her DASbusiness policy, Kate avoided approximately $10,000 in legal fees, plus the stress and time costs if this had gone to court.
Employment Dispute: Claim Example
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DAS Canada
Employment Disputes
Exclusions and conditions: An employee received oral or written warnings 180 days
preceding policy inception date 180 day waiting period for a lay-off or job elimination 90 day waiting period for other employment disputes Any claims or disputes relating to: Business transfers Negotiation of a collective bargaining agreement or arising from a
work disruption Due to death, illness, bodily injury and/or property damage $2,500 deductible for legal proceedings whereby a union is
acting on behalf of a unionized employee or ex-employee
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DAS Canada
Legal Defence
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DAS Canada
We will pay your client’s legal costs to defend their business for: Investigations by occupational health and safety boards Notices of Investigation or Violation issued by the CRTC in
relation to Canadian Anti-Spam Legislation (CASL) Police investigations Criminal offences Breach of privacy legislation Appeal of statutory notice Civil action being taken against a trustee of a pension fund set
up for the benefit or the insured’s employees
Legal Defence
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DAS Canada
Scenario: Donald is the owner of an industrial supplies distributor, and tragically
one of his employees was killed during an accident at work.
Resolution: DAS immediately appointed a lawyer to assist Donald with the
resulting health and safety investigation, to gather all the evidence and make submissions on his company’s behalf. The lawyer also defended the supervisor on duty at the time of the accident, who was under investigation for potential criminal negligence causing death. This was an extremely complicated matter, during an emotional time for Donald and his employees. In the end no charges were pressed, and it would have cost Donald’s business in excess of $100,000 in legal fees, if he was not a DASbusiness policyholder.
Legal Defence: Claim Example
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DAS Canada
Legal Defence
Exclusions and conditions: Breach of highway traffic laws or regulations in connection
with the ownership, use, or operation of a motor vehicle Specific sections within and/or appeals to the Federal Court or
other courts with respect to CASL
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DAS Canada
Contract Disputes & Debt Recovery(Optional coverage)
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DAS Canada
We will pay your client’s legal costs to either defend or pursue their legal rights for disputes related to: Selling or buying goods Providing or obtaining services
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Contract Disputes & Debt Recovery(Optional coverage)
Plus for debt recovery disputes, your client keeps 100% of the monies collected. Unlike collection agencies which can charge up to 30%
DAS Canada
Scenario: Sheila was involved in a dispute over the quality of work done by a
subcontractor that she engaged to pour a concrete foundation on a job. Sheila was seeking around $12,000 in damages as a result of delays and cost overruns to fix the foundation; which the sub-contractor refused to pay.
Resolution: After calling the legal advice helpline, DAS appointed a lawyer who
represented Sheila’s business all the way through to the hearing in the small claims court. The judge awarded Sheila the $12,000 she asked for. If Sheila did not have a DASbusiness policy, she would have paid out-of-pocket about $9,000 in legal and disbursement fees.
Contract Dispute: Claim Example
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DAS Canada
Exclusions and conditions: Dollar value of the dispute must exceed $500 90-day waiting period Any claims or disputes relating to: Contracts involving motor vehicles Terms of property lease or tenancy, if your client is the landlord Settlement amount payable under an insurance policy Loans, mortgages, pensions or any other financial products An insured person’s breach of professional duty
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Contract Disputes & Debt Recovery(Optional coverage)
DAS Canada
Statutory Licence Protection
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DAS Canada
Statutory Licence Protection
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We will pay your client’s legal costs to appeal to a regulatory or statutory authority, court or tribunal for: A suspension of a statutory licence A refusal to renew a statutory licence A cancellation of a statutory licence
DAS Canada
Scenario: Brigitte and her husband Shaun own a golf course. At the start of the
season, the local health inspector visits the club house and 9th hole snack bar. He immediately orders the them closed for food preparation and cleanliness bylaw violations and suspends the restaurant operating license for 30 days. Brigitte and Shaun want to appeal the suspension on the grounds the inspector’s decision was extreme in relation to what they perceived as minor violations. Plus they immediately instituted a training program for the large number of new staff that had started, and within seven days, policies and training were in place to address the original violations.
Resolution: Brigitte called DAS and we immediately helped by appointing a lawyer
to appeal the inspector’s decision and the restaurant’s operating licence was reinstated in less than 30 days.
Statutory Licence Protection: Claim Example
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DAS Canada
Exclusions and conditions: Original application or application renewal A licence appeal relating to a: Motor vehicle Professional licence issued to an individual
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Statutory Licence Protection
DAS Canada
Property Protection
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DAS Canada
We will pay your client’s legal costs to pursue civil action relating to their physical business property for: Physical damage to the property Legal nuisance Trespass
Property Protection
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DAS Canada
Scenario: Jackson owns a popular café and next door a bar opens up. Over the
next few months, Jackson is faced with the problem of the bar’s customers parking in front of his café. Plus rowdy and drunk bar patrons had fights in front of his café. Jackson is seeing a drop in customer visits and sales, and his business neighbour is refusing to do anything about it.
Resolution: We helped Jackson by appointing a lawyer who drafted a letter to the
bar owner requesting overflow parking be stopped and unruly patrons be better managed. The letter requested a written response and steps to be taken within 30 days or court action would start. After 30 days, no reply was received and there was no change in patron activity. The DAS appointed lawyer started court action against the bar owner seeking an injunction.
Statutory Licence Protection: Claim Example
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DAS Canada
Exclusions and conditions: A claim relating to a contract entered into by your client When a governmental, quasi-governmental, public, or local
authority: Places restrictions or controls on your client’s property Legally takes your client’s property away from them Does work on their property Motor vehicles Defending your client’s legal rights, other than in a counter-
claim Mining, subsidence, heave, or landslide
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Property Protection
DAS Canada
Bodily Injury
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DAS Canada
We will pay your client’s legal costs to pursue legal action following a specific or sudden accident which causes: Death, illness or bodily injury
Bodily Injury
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DAS Canada
Bodily Injury: Claim Example
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Scenario: Victoria is the top sales rep from a small printing company. While on
her client’s premises, she trips and falls as a result of lose extension cords lying on the ground. She suffers a concussion and neck injuries that keep her off work for 6 weeks. With their top sales rep out of action, the printing company’s sales drop. Plus the company’s group benefits plan does not include short term disability coverage, which means Victoria also lost income, as 50% is based on commission.
Resolution: Both Victoria and the printing company want to purse legal action for
the client’s negligence. In this case DAS would cover all legal costs and provide a lawyer to pursue legal action on behalf of the business and Victoria to recoup lost income.
DAS Canada
Exclusions and conditions: Any claim relating to a dispute with any provincial workers’
compensation board Claims arising from your client’s use or ownership of a
motor vehicle Defending your client’s legal rights, other than in a
counter-claim
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Bodily Injury
DAS Canada
Tax Protection
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DAS Canada
We will pay your client’s legal costs for a tax appeal or tax audit relating to: Liability for income tax, GST, PST, or HST arising from your
client’s business operations Payroll deductions compliance
Tax Protection
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DAS Canada
Tax Protection: Claim Example
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Scenario: Jas was contacted by the Canada Revenue Agency, who said her
business owed $560,000 in untaxed income after underpaying its taxes for three years. Jas believed her business had been overvalued, but was unsure how to respond to the CRA or navigate the tax court system, so she contacted DAS.
Resolution: We assigned a tax lawyer to respond and provided Jas with an
accountant to assist with the audit. The lawyer was able to negotiate the amount of undeclared income down to $280,000, cutting Jas’s tax bill in half. Thanks to her DASbusiness policy, Jas also saved $15,000 in legal fees!
DAS Canada
Exclusions and conditions: $500 deductible Any legal costs in excess of $25,000 Any claim: Arising from a tax avoidance scheme Caused by your client’s failure to register for GST, PST, HST Arising from an investigation by the CRA into alleged gross
negligence, dishonesty, or criminal offences
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Tax Protection
DAS Canada
Unlimited Telephone Legal Advice
Easy 24 / 7 accessAvailable seven days a week from 8 a.m. to midnight local time & available 24-hours for emergency situations
General legal adviceQuestions are responded to quickly, clearly & with a recommended course of action
Like a law firm on retainerGeneral legal advice is always given, regardless whether or not the issue is covered by the policy
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DAS Canada
One Major Claims Criteria
Reasonable ProspectsWe agree that it is always more likely than not, that an insured person will recover losses or damages or make a successful defence in a civil claim
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DAS Canada
Four Simple Steps to Make a Claim
Step 1: Starts with a Phone CallYour client calls the advice line, provides an intake agent some details & times for a lawyer to call back
Step 2: Legal Advice Is GivenAn advice lawyer will call your client back to discuss their legal issue & give advice
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DAS Canada
Four Simple Steps to Make a Claim
Step 3: Claims DeterminationIf the advice lawyer believes it is a claimable legal event, then it is referred to the DAS Claims Department for adetermination of coverage
Step 4: Panel Lawyer is AssignedDAS will appoint a specialist, local lawyer that will handle their case until its conclusion
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DAS Canada
Our Panel Firms
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National CoverageWith a vast array of legal expertise in every province to handle commercial legal disputes
Strict Service StandardsAnd authorized to proceed immediately to handle your customer’s case once assigned
DAS Canada
Limits of Indemnity
$200,000Per claim
$1,000,000In aggregate per policy period
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DAS Canada
Pricing & Commission
Premium is based on:1. Revenue2. Payroll3. Business class
17.5%Broker commission
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$1,260Is the average premium for DASbusiness
DAS Canada
Based On A One Sentence Description …
Of business owners said they would purchase a legal expense insurance policy
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Source: 2015 DAS Canada & Ipsos Small Business Owner Research
DAS Canada
Of Those Who Would Buy…
Would be willing to pay at least $1,260 to purchase a legal expense insurance policy
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Source: 2015 DAS Canada & Ipsos Small Business Owner Research
DAS Canada
Quoting & Binding a Policy
Visit DAS Broker Portalwww.das.ca
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DAS Canada
Surprisingly Only …
Of business owners felt they had sufficient commercial insurance coverage if sued or taken to
court by an employee, supplier, customer, government agency or general public
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Source: 2015 DAS Canada & Ipsos Small Business Owner Research
DAS Canada
Starting The Conversation
How much was spent on legal fees last year?
Could your business afford the financial impact of two-day civil action that would cost $37,000?
Have you ever been subject to an investigation by an occupational health and safety board?
Have you experienced issued concerning contractual obligations or collection of money owed?
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DAS Canada
Starting The Conversation
Would you have the time and resources to defend your business if someone pursed legal action against you?
Do you know someone who lost their business due to the legal fees and damages associated with a lawsuit?
Do you know there are legal expense gaps in your current commercial insurance portfolio?
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DAS Canada
The Value Proposition
We empower business owners when they face unforeseen legal issues. A DASbusiness policy:
Allows your clients to defend or pursue their legal rights
Protects your clients from costly legal expenses
Gives them unlimited access to legal advice at any time
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DAS Canada
D & OD & OCGLCGLEPLEPLFleetFleet PropertyPropertyLifeLife
Legal ExpenseLegal Expense
Complete the Financial Protection Portfolio
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DAS Canada
Contact your DAS Broker Consultant or visit www.das.ca/broker
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DAS Canada
Our Partner Panel Firms: Ontario
Gowlings McCague Borlack LLP Miller Thomson Edward L. Burlew Pace Law Devry Smith Frank LLP House Law Szemenyei MacKenzie
Group LLP X Police
Back
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DAS Canada
Our Partner Panel Firms: Manitoba
D’Arcy & Deacon LLP
Back
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DAS Canada
Our Partner Panel Firms: Saskatchewan
Miller Thomson McDougall Gauley LLP Holash Logue McCullagh
Back
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DAS Canada
Our Partner Panel Firms: Alberta
Brownlee LLP Parlee McLaws LLP Scott Venturo LLP
Back
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DAS Canada
Our Partner Panel Firms: British Columbia
Gowlings Access Law Group Lesperance Mendes Smeets Law
Corporation Whitelaw Twining Law
Corporation
Back
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DAS Canada
Our Partner Panel Firms: Quebec
Boro Polnicky Lighter Kugler Kandestin Langlois Kronström
Desjardins Robinson Sheppard
Shapiro
Back
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DAS Canada
Our Partner Panel Firms: Atlantic Canada
Cox & Palmer (NS) Ritch Durnford
Lawyers(NS)
Back
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