Legal expense insurance provides a cover against any cost incurred while suing a negligent driver, an unfair job loss or other such events. On the other hand, someone has put a claim against you and you have to bear legal expenses as a result.
Higher legal costs can prevent you from going to court for your legal rights. To avoid this, you can opt for legal expense insurance. It is usually offered as a part of car insurance or home insurance. The insurance covered under these plans may differ between £50 000 to £100 000.
In this blog, we will guide you about legal expense insurance and its benefits. Moreover, we will discuss why you need this type of insurance.
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What is Legal Expense Insurance?
Legal expense insurance is a cover against your legal expenses. You might have some legal issues you need compensation for. This insurance provides compensation for these costs. For example, a customer has sued you for manufacturing a faulty good that caused him an injury.
Similarly, you have to bear costs legally for an accident in which you have no fault. Such issues can prove a burden on your finances, especially when you are struggling financially. Therefore, if you have opted for legal expense insurance, you can save yourself from legal costs.
How to Get Covered Your Legal Expenses?
Legal expense insurance is provided as a part of the car insurance and home insurance legal covers. Let’s discuss them!
Car Insurance Legal Cover
Car Insurance provides a legal cover of £100 000 for claiming the damage you made against a third party person for damaging the insured vehicle. On the other hand, you can also claim these legal expenses if someone has made claims against you for causing an injury or damaging their property or possessions.
Home Insurance Legal Cover
Home insurance covers various types of legal costs associated with the life and goods of the person who has home insurance.
For example, if you manufacture or supply goods and services, you might have to face some challenges when a customer sues you for causing an injury to the person. On the other hand, you might also incur legal costs due to unfair job dismissals or workplace problems.
This type of insurance provides a legal cover between £50 000 to £100 000.
Difference between Legal Expense Insurance and Liability Insurance
Legal expense insurance and liability insurance are different from each other in many ways. For example, car insurance provides you with a cover of £20 against any losses caused by the insured car. On the other hand, the home insurance provides a cover of £2m if your house has been damaged in an accident.
On the contrary, the legal expense insurance covers only the cost of pursuing your legal proceedings and procedures. For example, the cost of hiring a lawyer for legal advice or carrying out legal proceedings.
Other types of insurance cover the legal costs as a part of the particular insurance plan. They do not charge separately for carrying out the legal proceedings. So, you do not need to worry about the legal expenses in those cases.
What is the Total Cost of Legal Expense Protection?
Different insurers provide a variety of premium plans according to their restrictions and policies. But you need to remember that legal expense insurance is provided as an add-on to the car insurance and home insurance policy.
The premium costs may vary from £25 to £30 with a claim of £100 000. Usually, you can make a claim for 180 days. For more information, you can consult your insurer for their payment plans.
Benefits of Buying A Legal Protection
While counting the benefits of buying legal protection, you will discover many reasons to buy it. For example, things are as straight as we have planned them. Instead, we can come across certain legal complications where we will be asked to compensate for the losses we have made.
On the other hand, we might have to reclaim losses from a third party for our losses. However, you have to pay for the legal expenses in either case. The cost of legal expenses is much higher in the United Kingdom. So, if you have insured your legal expenses, it will provide financial relief to you, your family and your business.
Similarly, you will get a stress-free situation whenever you get into hot waters as you can seek the help of a solicitor for managing your legal proceedings.
So, covering your legal expenses with car insurance or home insurance can make your life convenient and you can meet any uncertainty in life without getting worried about it. So, planning ahead of time can save your efforts, time and money at the same time.
Conclusion
If you are manufacturing goods and delivering services, you might have to go through the challenges of legal claims. On the other hand, you might need to reclaim losses from a third party for the losses unrecoverable from the general types of insurance.
So, you need to buy insurance for your legal expenses to rebalance your finances or expenditures. Legal expense insurance can help you in this regard. You can buy this insurance as a part of your car insurance legal cover or home insurance legal cover.
These types of insurance provide a legal cover between £50 000 to £100 000. So, you do not need to worry about the legal expenses anymore. Because you have already prepared a plan to meet an uncertain situation like the legal proceedings and their expenditures.
If you are struggling financially and need help in managing your legal expenses, you can consult with an expert legal advisor at AccountingFirms within minutes.
Disclaimer: All the information provided in this article on Legal Expense Insurance including all the texts and graphics is general in nature. It does not intend to disregard any of the professional advice.