Legal disputes are often costly and stressful to pursue or defend. Many people are deterred from taking legal action because of the financial risk and uncertainty of the outcome. This is where legal expenses insurance can help.
Unlike conventional insurance, legal expenses insurance does not make a direct payment for a claim. Instead, the insurance covers the legal costs involved in pursuing or defending a claim. Legal costs include the appointment of solicitors, barristers and expert witnesses. In many cases, the legal expenses insurance provider manages the claim from start to finish.
There are three main categories of legal expenses insurance are for commercial, motor and household. We are able to offer all three types of legal expenses insurance for our clients.
FAQ’s
Q - What is Legal Expenses Insurance ?
The insurer helps individuals and companies alike meet the cost of taking legal action or defending their rights if they have a dispute with another party by providing insurance designed to meet these costs.
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Motor – the insurer will endeavour to recover uninsured losses, such as compensation for injuries from the person who caused the accident. |
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Personal – the insurer can protect against a variety of potential disputes, including employment problems, bodily injury and contract disputes. |
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Commercial – the insurer can pursue or defend legal rights in a wide range of business related disputes, including employment disputes and awards, legal defence, property and tax protection. They also provide an online employment manual which gives up-to-date advice on the main areas of UK employment law. |
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Q - What do ‘legal costs’ include?
This will include things like the solicitors’ or barristers’ fees and charges for disbursements, not to mention the opponents costs should you lose and be liable to pay them.
Q - Will a legal expenses policy cover ‘any’ legal dispute ?
Our policies cover you in respect of a wide range of insured perils. The cover is not unlimited and the policy wording will list the incidents which you are insured against.
Q - What happens if my own solicitor begins work on my dispute, before I notify the legal expenses insurer?
If you think you may have a claim do not ask a solicitor for advice unless your legal expenses insurer has given permission to do so. If you do, they will not pay the costs involved. There is also a chance that your claim could be prejudiced by not taking and following our advice from the moment you became aware of the dispute.
Q - If I have a legal problem before my policy starts, will this still be covered ?
Matters which you are aware of before the start of your policy are excluded.
Q - What is meant by ‘reasonable prospects’ ?
It is not beneficial for anyone concerned to support a claim which has little chance of success. In civil claims the appointed solicitor must agree that there is a better than 50% chance of the claim being successful in order for us to proceed. Reasonable prospects must always exist throughout the duration of a civil claim.
Q - If I speak to the legal advice helpline, does this automatically trigger a claim ?
If you call the legal advice helpline to discuss a problem that might lead to a claim, it is important to note that, due to the confidential nature of the service, a telephone call to the legal advice helpline does not register a possible claim under the policy and you will still need to contact us for a claim form.
Q - What happens if my legal costs end up going over my limit of indemnity ?
The indemnity limit shown in your policy schedule is the maximum that would be paid out in the event of a claim. If your case is likely to exceed the limit you will be informed, but you will be responsible for any costs over the indemnity limit.
Q - My policy suggests that some disputes may be ‘negotiated for’ rather than simply pursued or defended in court. Why is this ?
It is often more beneficial for both parties to try and reach a settlement rather than go to court which is both stressful and time consuming. The majority of legal disputes are in fact settled by negotiation. The insurer always provides the most appropriate solution to your legal dispute which may well entail entering into negotiation as the fastest and most effective way of resolving a dispute.
