| Legal Expenses Insurance |
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Increasing Government legislation and alternative ways of conducting tax investigations by the Inland Revenue, are placing heavy burdens on businesses nationwide. Small to Medium sized Enterprises are often unlikely to have in-house legal resources & are therefore most at risk. Commercial Legal Expenses Insurance policies, which protect against the cost of potential commercial legal disputes, provide the legal advice and representation businesses need to minimise their exposure to many daily risks. Employment Law and the fear of a claim from an employee, ex-employee or even potential employee is the driving force behind many companies' need for Commercial Legal Expenses Insurance. Legislation, like the new Employment Act 2000, reflect a shift back towards the employee by introducing new rights for part-time workers such as parental and maternity leave. The Working Time Regulations and National Minimum Wage Act have also increased employee rights, which means many employers need to check, and in many cases amend their policies and procedures to remain within the law. Keeping up-to-date often requires the help of a lawyer, & this is exactly where the benefits of Legal Expenses Protection policies really work. Standard covers often include assistance & protection in the following key areas:
In its early days, Commercial Legal Expenses Insurance concentrated on underwriting a risk and the insurer stepping in to finance claims when they occurred. Today, as the market develops, insurers are increasingly using risk management tools to reduce the likelihood of policyholders even becoming involved in a dispute. These tools include On-Line Business Advice Services, providing detailed guidelines on matters of employment, tax and debt recovery. Providing Legal Advice through an e-mail or telephone Helpline Service enables our clients to obtain up-to-date information about the law and how it affects their individual circumstances. The specialists at the Helpline Service explain what action a policyholder can or should take under the law to pursue their case, or to comply with any requirements under new legislation. Legal advice is often the first point of contact our clients have with the insurer before making a claim. Should a mistake be made and a claim brought at an Employment Tribunal, uninsured firms will probably face a legal bill of several thousand pounds. Without Legal Expenses Insurance, winning their case will be of limited relief as, regardless of the outcome, costs are not recoverable under the Tribunal System. Typical Case insights : Employment Dispute - An employee resigned her position and then made a claim of sexual discrimination against her former employer. The employer's Legal Expenses Insurers appointed a solicitor to represent them at the Employment Tribunal. Despite their successful defence & as the law stands, the employer still incurred legal costs of £3,300 which could not be recovered. However, the costs were paid by the Legal Expenses Insurer. Legal Defence - When a policyholder failed to report an accident to the Health & Safety Inspectorate, they faced prosecution. Solicitors appointed to represent the policyholder advised they should admit their guilt, but pleaded mitigation on their behalf. The policyholder was given a Caution and the Legal Expenses Insurer paid the solicitor's fees. Tax Investigations - An incorrect return discovered by the Inland Revenue in a policyholder's accounts triggered a Full Enquiry. Accountants appointed by the Legal Expenses Insurer made technical changes to the accounts and showed where some areas of additional taxes needed paying. No further interest or penalties were charged. The accountant's fees of over £5,000 were paid by the Legal Expenses Insurer.
Contact Our Commercial Team to find out just how inexpensive Commercial Legal Expenses Insurance can be. |