Professional Standards Scheme Overview The Professional Standards Scheme (PSS) is a statutory scheme operating under the Professional Standards Act 1997 (WA) (Act). The Scheme is approved by the Professional Standards Council. The Professional Standards Scheme (formerly Limitation of Liability Scheme) provides a significant benefit for Law Society members. The Scheme commenced on 1 July 2019 and does not apply to claims prior to that date or prior to a participant’s commencement with the Scheme. The Scheme creates a liability cap on damages that can be recovered by a plaintiff in a professional negligence action taken against a Participating Member of the Scheme. The Scheme caps occupational liability of participating members to an amount of $1.5 million, $5 million or $10 million depending on the insurance policies and total annual fee income of the law practice. Things to Note: The Scheme is not an insurance product and does not affect the practitioner’s existing requirements to obtain insurance through Law Mutual (WA), or otherwise as applicable. Compulsory professional indemnity insurance must cover the amount up to the liability of the cap. The liability cap under the PSS relates only to damages and does not include costs.
For a law practice to gain the full benefit of the Scheme and the limitation of liability, all legal practitioners (that is, any person who holds a current Australian practising certificate) within the law practice, and the law practice itself if it is an incorporated legal practice (ILP), would need to be members of the Society and the Scheme. The Scheme is available to Ordinary, Life and Incorporated Legal Practice members. This is an opt-out Scheme which, subject to the provisions of the Professional Standards Act 1997 (WA) applies to Law Society members. However, the Scheme provides for circumstances in which members may be exempt and can apply for exemption by completing the Application for Exemption form. The Law Society has discretionary authority, on application by a participating member, to specify a higher maximum amount of liability. Participating members need to disclose their limited liability status. Non-disclosure is an offence under the Professional Standards Act 1997 (WA). Further information regarding disclosure is available in the Professional Standards Scheme Guide, and on the Professional Standards Council website. For more information regarding the Scheme go to https:// www.lawsocietywa.asn.au/pss/, call (08) 9324 8624 or email pss@lawsocietywa.asn.au
