Legal disputes are usually the last thing on anyone’s mind until they actually happen.
That’s where legal expenses insurance comes in. It acts as a safety net, ensuring you aren’t priced out of getting the professional help you need to defend your rights.
In this article, we will find out what legal expenses cover is, and what it does or doesn’t cover.
What is Legal Expenses Cover?
Legal expenses cover is an insurance product that can be purchased in addition to your standard home insurance policy.
Whether it’s a row with a neighbour over a boundary or a disagreement with an employer, the thought of solicitor fees and court costs is enough to make anyone feel uneasy.
This coverage serves to safeguard you against the financial implications of legal actions, whether you are pursuing a claim against someone or defending yourself.
What Does Legal Expenses Cover Include?
While every policy has its own specific terms, a standard legal expenses cover policy includes the following:
Employment Disputes
If you’re facing unfair dismissal, discrimination, or a breach of contract at work, this cover helps pay for the legal advice and representation needed to take your case to an employment tribunal.
Property & Boundary Rows
Disputes with neighbors, boundaries, or rights of way can get heated and expensive. Your insurance can cover the costs of legal action to protect your property interests.
Personal Injury Claims
If you’re injured in an accident that wasn’t your fault, whether it’s a slip in a shop or a more serious incident, this cover supports your claim for compensation against the responsible party.
Consumer Disputes
Have you paid for faulty goods or a service that wasn’t up to scratch? If the retailer or tradesperson refuses to make it right, your legal cover can help you pursue them for a refund or damages.
Tax Inquiries & Investigations
Being hit with an HMRC investigation is stressful. This section of the cover provides professional representation to help you navigate tax inquiries or full-scale audits.
Legal Defence
If you find yourself facing certain types of legal proceedings, such as a motoring prosecution or a civil action against you, this cover provides the funds for a robust legal defense.
Jury Service Salary Loss
If you are called for jury service, your employer might not pay your full salary. Many policies will top up your income so you aren’t out of pocket while performing your civic duty.
What’s not included in legal expenses cover?
While legal expenses insurance is a great safety net, it isn’t a “blank cheque” for every legal issue.
Most policies have specific exclusions to prevent high-risk or certain types of claims. Here’s what is typically left out of legal expenses cover:
Low “Prospect of Success”
This is the most common reason a claim is rejected. Most insurers will only fund your case if a solicitor agrees you have at least a 51% chance of winning. If the odds are against you, they won’t cover the costs.
Matrimonial & Family Law
Standard legal expenses rarely include divorce proceedings, child custody battles, or drafting a will. These are considered personal lifestyle choices rather than unexpected legal disputes.
Pre-existing Disputes
You cannot buy insurance for a house that is already on fire. If a dispute started (or you were aware it was likely to start) before you took out the policy, it won’t be covered.
Criminal Prosecutions (With Exceptions)
While some policies cover a legal defense for motoring or civil issues, they generally won’t pay for your defense if you are charged with a serious criminal offence or a deliberate illegal act.
Business-Related Claims
A personal legal expenses policy attached to your home insurance is strictly for “private” matters. If you have a dispute related to your own business or a commercial rental property, you’ll need a specific commercial policy.
Fines and Penalties
Your insurance might pay for the solicitor to defend you in court, but it will never pay the actual fine, penalty, or compensation awarded against you if you lose the case.
Disputes with the Insurer
You generally cannot use your legal expenses cover to sue the insurance company that provides the policy. Any disagreements regarding the policy itself usually have to go through a separate complaints or ombudsman process.
Legal Expenses Cover: Key Considerations
These policies can assist in managing the legal expenses associated with pursuing claims, and cover is provided to cover the costs of legal advice and representation.
For your insurer to become involved in a legal claim on your behalf, they typically need to be convinced that your case has a reasonable chance of success.
It’s important to understand that legal expenses cover does not extend to covering compensation, and it’s crucial to be aware of any exclusions.
Do You Already Have Legal Expenses Cover?
You may already have legal expenses cover through your home insurance policy, as many policies include this coverage as a standard feature. If not, it is often available as an optional add-on.
Additionally, legal expenses insurance might also be included with certain bank accounts, credit cards, or other insurance policies. Therefore, it’s advisable to check whether you or any members of your household have legal expenses insurance, as it can sometimes extend to cover everyone residing in the property.
Get legal expenses cover today with Nest Gi
If you would like to know more about legal cover, get in touch with our team today! support@nestgi.co.uk 03330 110555
