Definition
Legal expenses insurance covers the costs of solicitors, court proceedings and expert witnesses in the event of a dispute under employment law. The insured event generally arises when a breach of employment law obligations is first alleged – for example, following a dismissal. The insurer may only refuse payment if the case clearly has no prospect of success or appears to be frivolous. If the insurer wrongfully refuses, the policyholder may take legal action to obtain a confirmation of cover.
Specialist solicitor in employment law
With over 15 years’ experience in employment law
Classification under employment law
Before taking legal action, you should obtain a confirmation of cover from your legal expenses insurer. If the claim is approved, the insurer will cover legal and court costs. If the claim is rejected, the decision can be challenged.
Distinction from related terms
Waiting period: Cover is only granted if the insured event occurred after the waiting period has expired. Unless the waiting period has been completed, there is generally no insurance cover.
Excess: Even if cover has been confirmed, you may still have to bear part of the costs yourself. The excess therefore affects the extent of the costs covered, not the confirmation of cover itself.
Practical tip
Some insurance companies try to refuse cover on the grounds of a ‘lack of prospects of success’. This is strictly limited by law. An initial assessment by a solicitor can help you to overcome a refusal of cover. Insist on a written explanation for the refusal.
