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ALIA Again Reduces Your Levies

ALIA is pleased to announce that your costs for indemnity coverage will drop again this year. ALIA’s ability to provide coverage to you at a lower cost is a result of:

  • Reduced claims and associated costs due to Alberta lawyers’ safer practice and ALIA’s effective management of claims
  • Positive returns on ALIA’s investments
  • ALIA negotiating better rates for the indemnity program’s insurance

Combined, your Professional Liability Levy and your Misappropriation Levy are $296 less than last year’s levies (almost a 10% savings). Further, ALIA has negotiated increased coverage for you under the Universal Cyber Coverage Program, without any additional increase in premium.

The annual levies set by ALIA, and the third-party Universal Cyber Coverage Premium payable by each Subscriber for the 2026-2027 policy year (July 1, 2026, to June 30, 2027) are as follows:

  • $2,690 for Professional Liability ($220 less than last year’s, a 7.6% decrease)
  • $110 for Misappropriation ($76 less than last year’s, a 40.9% decrease) 
  • $265 for Universal Cyber Coverage Premium (same as last year’s but with increased coverage)

Invoices for these required payments, plus GST, will be available online through the Law Society of Alberta’s Lawyer Portal before May 31, 2026, and must be paid on or before June 30, 2026.

Alberta Lawyers Indemnity Association’s (“ALIA”) board of directors (the “Board”) has set the Professional Liability (negligence) and Misappropriation (lawyer theft) levies for the 2026-2027 policy year (July 1, 2026, to June 30, 2027) for each Alberta lawyer participating in the mandatory indemnity program (“Subscriber”) at:

  • $2,690 (plus GST) for Professional Liability
  • $110 (plus GST) for Misappropriation

The levies are the required payments for indemnity coverage (like insurance policy premiums) that must be paid by each Subscriber for coverage each year. In setting these levies, the Board considers:

  • the detailed analysis by the independent external actuary
  • the claims made against Subscribers
  • the returns on ALIA’s investments
  • other relevant information

This year, other relevant information included the erratic investment market and recessionary risk exacerbated by global hostilities, and tariffs imposed by the United States, including Canada’s response.

When possible, without putting the indemnity program at risk of a special assessment, ALIA uses capital from investment returns to subsidize the annual Professional Liability base levy. Those returns, combined in recent years with the Civil Litigation Filing Levy (“CLFL“), have enabled ALIA to subsidize the base levy almost every year since 2008. ALIA continues to subsidize that levy this year.

For the 2026-2027 policy year, the Board has applied capital of approximately $6.26 million to reduce the theoretical levy by $762 per Subscriber, resulting in a Professional Liability base levy of $2,690 per Subscriber. Once again, ALIA has substantially reduced costs for Subscribers through the strategic application of capital savings.

Also supported by actuarial analysis, the Board set the Misappropriation levy at $110 per Subscriber for the 2026-2027 policy year, the lowest in history—36% lower than it was in 2002-2003, 24 years ago! This year we achieved a significant reduction of $76 (a 40.9% decrease) compared to last year’s then record low levy of $190 and an 83% reduction from its high of $665 per Subscriber in 2009-2010.

The Professional Liability levy, set at $2,690 per Subscriber, is $220 less than last year’s—a 7.6% decrease. That is only $116 (4.5%) more than it was 24 years ago, which is especially impressive considering that one dollar in 2002 is worth roughly $1.69 today. When adjusted for inflation, this would actually represent a 38% reduction in cost.

Payment of the annual levies and the Universal Cyber Coverage Premium for 2026-2027 is due by June 30, 2026. Invoices will be made available online through the Law Society of Alberta’s Lawyer Portal before May 31, 2026. GST is payable on the levies and the Universal Cyber Coverage Premium.

Universal Cyber Coverage Premium

Commencing December 31, 2022, ALIA implemented Universal Cyber Coverage for all Subscribers. The Universal Cyber Coverage Premium for the July 1, 2026, to June 30, 2027, policy period was renewed for the same premium as last year even though coverage has been enhanced. Universal Cyber Coverage is provided by Beazley Canada, a global insurer (“Beazley”).

Please visit ALIA’s website for more information on the Universal Cyber Coverage Program.

The invoice for the Universal Cyber Coverage Premium for 2026-2027 will be available online through the Law Society of Alberta’s Lawyer Portal before May 31, 2026, and must also be paid on or before June 30, 2026.

Civil Litigation Filing Levy (“CLFL”)

The CLFL remains the same as in previous years at $75 per filing. This per-filing levy is not included in the annual levies but instead is to be remitted by Subscribers for each qualifying filing (for example, a statement of claim) made at the Court of King’s Bench. Please visit ALIA’s website for more information on the CLFL.

ALIA’s board of directors (the “Board”) establishes the annual levy after considering relevant information, including claims history, trends, costs of the stop-loss insurance ALIA purchases, investment income, and actuarial projections. The Board also considers the recommendations of the Board’s Executive Committee, professional advisors (including its external actuary, Willis Towers Watson), and ALIA’s management.

The actuary’s recommendation is based largely on their annual calculation of the costs of operating the indemnity program, including defence costs and payment of claims which form the largest component of the levy. As a result, increases in claims costs usually necessitate a higher levy.

In the levy-setting process, the Board first determines the “theoretical levy”, which is essentially the cost of covering claims—including defending Subscribers, repairing errors, compensating the public, and operating the indemnity program—divided by the number of Subscribers. The theoretical levy is the amount each Subscriber would pay in the absence of any adjustments.

The Board may then adjust the theoretical levy for reasons including: maintaining the program’s capital level and financial health, stabilizing the levy over time, and guarding against the need for all Subscribers to make an additional “special levy” payment.

In assessing the indemnity program’s capital level, the Board considers the recommendation of ALIA’s management and the actuary, using a capital target tool developed for ALIA by its actuary. If capital exceeds the target, the Board applies the excess amount to reduce the theoretical levy. But if it is lower, the Board increases the theoretical levy to replenish the capital. The result is the “actual levy” that each Subscriber pays for ALIA’s indemnity coverage.

Professional Liability (Negligence)

For the 2026-2027 policy year (July 1, 2026, to June 30, 2027), after considering all relevant factors, the Board accepted the recommendation of ALIA’s management, actuary, and the Board’s Executive Committee, and set the theoretical levy for Professional Liability at $3,452. Absent any adjustment, that would have been the actual levy each Subscriber would have paid. However, the Board again authorized using ALIA’s capital to reduce that amount by $762 per Subscriber. This reduction resulted in a Professional Liability base levy assessment of $2,690, $220 less than last year.

ALIA’s investment returns play a significant role in its ability to use capital to reduce the Professional Liability base levy each Subscriber pays.

Misappropriation (Lawyer Theft)

For the 2026-2027 policy year, the Board accepted the recommendation of ALIA’s management, actuary, and the Board’s Executive Committee, and set the Misappropriation levy at $110, a 40.9% reduction from last year’s then record low levy of $190, an 83% reduction from its high of $665 per Subscriber in 2009-2010 and 36% lower than it was in 2002-2003, 24 years ago! This calculation is based on actuarial analysis.

Universal Cyber Coverage Premium

The Universal Cyber Coverage Premium is negotiated with the third-party insurer and is not calculated by ALIA’s actuary. In the negotiations, ALIA, with its broker, Aon, seeks the optimal balance of premium and coverage for Subscribers, while maintaining the universal nature of the program, so all Subscribers and clients are covered, without any onerous application process. For policy limits and other coverage details, please log in to the Law Society of Alberta’s Lawyer Portal.

The major components of the base Professional Liability Levy include the following:

  • 64% Claims and Related Costs
  • 9.8% Insurance Costs
  • 12% Salaries
  • 9.1% Law Society Management Fee
  • 5% Administration

ALIA continues to focus on ensuring that the levies and the Universal Cyber Coverage Premium are as low as reasonably possible for the optimal coverage. These include, but are not limited to:

  • Educating Subscribers on loss prevention
  • Applying the CLFL credit based on revenue from qualifying filings
  • Taking steps to ensure compliance (filing and payment) with the requirements of the CLFL
  • ALIA’s actuary applying a risk philosophy appropriate for a mandatory non-profit program
  • ALIA’s continued focus on enhancing its operating efficiencies
  • Providing ALIAlerts to warn Subscribers about current fraud schemes that are targeting lawyers and their firms
  • Effective use of brokers to negotiate and cede risk with qualified reinsurers at optimal premiums

Payment for the 2026-2027 annual levies and the Universal Cyber Coverage Premium is due by June 30, 2026.

Invoices will be made available online before May 31, 2026, through the Law Society of Alberta’s Lawyer Portal.

The amounts of the invoices for those without individual surcharges will be:

  • $2,690 per Subscriber for Professional Liability (negligence)
  • $110 per Subscriber for Misappropriation (lawyer theft)
  • $265 per Subscriber for Universal Cyber Coverage Premium
  • Plus GST on each

The subtotal for these levies and premiums is $3,065 plus GST for a total with tax of: $3,218.25.


Levy FAQs

  • The 2026-2027 base levy for Professional Liability is $2,690
  • The levy for Misappropriation coverage is $110
  • The premium for Universal Cyber Coverage is $265

The total for these levies and Universal Cyber Coverage Premium is $3,065 plus GST, or $3,218.25 including GST.

You can expect to receive communications regarding the invoice for your levies and Universal Cyber Coverage Premium (and any applicable surcharge based on your individual claims history) before May 31, 2026.

Payment of the levies and Universal Cyber Coverage Premium is due by June 30, 2026. This year, payments can be made in a single payment or by two instalments due June 30, 2026 and December 31, 2026. Invoices will be available online through the Law Society of Alberta’s Lawyer Portal.

Please note:  ALIA will be eliminating instalment payments as of July 1, 2027, for the 2027-2028 ALIA policy year. View this post for more information.

For information on how to make a payment to ALIA, view Making A Payment to ALIA.

For the 2026-2027 ALIA policy year, lawyers can still opt to pay levies and the Universal Cyber Coverage Premium in two instalments with due dates of June 30 and December 31, 2026. However, as of July 1, 2027, it will no longer be an option to pay in installments.

As part of simplifying the payment schedule for lawyers and because of changes to payment methods, both the Law Society and ALIA have opted to eliminate instalment payments for levies and fees. By offering more flexibility in types of payment and bringing back credit cards as a payment option, lawyers, students-at-law, and firm administrators can manage their own administrative costs and cash flows throughout the year.

This change will take effect on January 1, 2027, for Law Society annual fees and July 1, 2027, for the 2027-2028 ALIA policy year. View this post for more information.

Payment of the levies and Universal Cyber Coverage Premium is to Alberta Lawyers Indemnity Association even though it is made on the Law Society of Alberta’s Lawyer Portal.

Payments can be made electronically. Please visit Making a Payment to ALIA for payment options and instructions.

Please be advised that payments by cheque, e-transfer/email transfer, direct deposit, and bank drafts cannot be accepted by the Law Society of Alberta or ALIA.

The indemnity program runs on a non-profit basis. Therefore, there is a direct link between the amount the indemnity program pays out to defend Subscribers and satisfy claims against them and the total amount of the Professional Liability levy assessed on Subscribers. Where possible, ALIA uses capital to reduce the theoretical levy. However, as ALIA’s capital fluctuates over time and capital reductions may not always be possible, Subscribers must remain vigilant in claims prevention, as future levies can be reduced by lowering the frequency and severity of claims made against Subscribers.

ALIA and the Law Society are working to avoid or reduce claims in various ways, including the following:

  • providing ALIAlerts to warn Subscribers about current fraud schemes that are targeting lawyers and their firms
  • conducting educational outreach sessions to Subscribers on claims and loss prevention
  • auditing new and legacy law firms to ensure responsible practices are in place
  • enhancing our electronic trust transaction review capabilities and ongoing risk assessments to identify and address unacceptable practices
  • offering outreach education to firms and lawyer groups, as well as helpful webinars
  • providing information and resources, such as ALIAdvisory education articles
  • providing significant funding to the Alberta Lawyers’ Assistance Society (Assist) to make additional support resources available to Alberta lawyers and families

Looking forward, ALIA continues to investigate opportunities to reduce the levies by enhancing loss prevention activities and assessing options for future program funding and welcomes any suggestions from Subscribers.

Most types of negligence claims are avoidable, such as claims resulting from missed limitation dates and dismissal of actions for delay. Surprisingly, this is the largest area of losses for the indemnity program and, accordingly, the largest contributing factor to the Professional Liability levy. There is an opportunity for Subscribers to lower this levy by reducing costs for all types of claims over the coming years.

As the frequency and severity of claims directly affect the Professional Liability levy, ALIA continues to reinforce the importance of loss prevention and asks Subscribers to avoid or minimize claims. ALIA’s claims funding model ensures that money saved on claims will result in lower levies in future years.

Yes. Although participation in the indemnity program is mandatory for Alberta lawyers in private practice, several categories of lawyers are exempt from the program and the levy assessments.

Alberta lawyers employed by a government, corporate, or similar organization (other than a professional corporation), or in another similar employment or independent contractor relationship, as exempted by the Law Society’s Executive Director or ALIA’s President and Chief Executive Officer, are not assessed the levies. These lawyers are not covered by the indemnity program and, accordingly, they, their employers, or their private insurers (if they purchased insurance) would be responsible for any losses.

Additionally, some Alberta lawyers are indemnified at no charge for pro bono services through approved organizations as set out in Rule 148 of the Rules of the Law Society of Alberta. The Rules of the Law Society of Alberta also set out several other exemptions.

Finally, for a time, lawyers who had practiced for over 50 years were exempted from paying the levy as long as they remained claims free. Although this exemption has been removed, those lawyers who received it at the time are currently grandfathered.

No, ALIA does not offer pro-rated refunds. Instead, ALIA allows lawyers to pay in two instalments. For example, if a lawyer leaves private practice before the second instalment is due, then the second instalment is not payable, and the lawyer only paid 50 percent of the levy. ALIA encourages lawyers considering such practice changes to pay in two instalments.

Please note: Effective July 1, 2027, ALIA will be eliminating instalment payments for levies, for the 2027-2028 ALIA policy year. Consequently, effective July 1, 2027, ALIA will start offering pro-rated refunds of levies based on a refund and proration schedule similar to that of the Law Society. More information on prorated refunds will be made available closer to that time. View this post for more information.

All Subscribers historically shared the burden of incurred losses equally by paying the same levy. However, some Subscribers may be subject to special assessments (called “surcharges”) in addition to the base Professional Liability levy due to their individual claims history. Surcharges are made pursuant to The Rules of the Law Society of Alberta and are set at rates approved by the Board. More information on the Enhanced Surcharge Protocol can be found on the Enhanced Surcharge Protocol FAQs.

The CLFL also came into effect starting July 1, 2021, for an ongoing pilot project. The terms of the CLFL, including the obligation to self-report and pay the CLFL commencing October 31, 2021, are contained in the Transaction and Filing Levy Schedule. For more information on the CLFL, view the Civil Litigation Filing Levy Pilot.

Yes. Although ALIA does not sell excess coverage (over the mandatory $1 million per occurrence), it recommends that all Subscribers investigate purchasing optional excess coverage for additional protection and periodically review their excess coverage to ensure it is proportionate with the risk and value of transactions undertaken by the Subscriber and their law firm.

While ALIA does not recommend one provider over another, below is a list of providers that offer excess insurance in addition to ALIA’s coverage:

The Group Policy, the indemnity contract that sets out the coverage provided by ALIA, is posted on ALIA’s website. To assist Subscribers, ALIA has updated its website to include responses to frequently asked general policy questions, such as basic coverage information, under Group Policy FAQs.

If you have questions or comments regarding the levy, please contact ALIA by email or by phone at 403.229.4716 or 1.800.661.1694 (toll-free).

Certificates of Indemnity are official Alberta Lawyers Indemnity Association documents that should be sufficient to produce to other governing law societies as required.

To obtain a Certificate of Indemnity, please login to the Law Society of Alberta’s Lawyer Portal and complete the following steps:

  1. Hover your cursor over “Welcome, Your Name” in the top right corner.
  2. Select “My Profile” from the dropdown menu that appears.
  3. Select “My Account” from the menu that appears on the left side of the screen.
  4. Select “Options Dropdown” next to your invoice for the required year.
  5. Click “Print Indemnity Certificate”.
  6. To view invoices from previous years, select “Show History”.

Once the above steps have been completed, you can either print a copy or save as a PDF.

Any summary of the Group Policy contained above is provided for general information purposes only and not as legal advice and is qualified in its entirety to the terms and conditions of the Group Policy. The Group Policy is the contract that specifically and fully describes Subscribers’ coverage, and nothing stated herein revises or amends the policy. Subscribers should always review the Group Policy to confirm their obligations in any circumstance.

ALIA does not provide legal advice. ALIAdvisory newsletters, ALIAlert warnings, ALIAction notices, and the content on ALIA’s website, notices, blogs, correspondence, and any other communications are provided only for the general information of members who participate in the indemnity program 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. If you think you would benefit from legal advice, please contact an Alberta lawyer directly.

Links to third-party websites are provided for convenience only; ALIA does not vet or endorse the information contained in linked websites or guarantee its accuracy, timeliness, or fitness for a particular purpose.