Legal Expenses Insurance
Types of Legal Expenses Insurance
- Before-the-Event (BTE) Insurance:
- This policy is taken out in advance, before any legal issues arise.
- It is often included as an optional extra in home, motor, travel, or business insurance policies.
- Commonly covers legal disputes related to employment, property, contract issues, or personal injury claims.
- It may provide access to a legal helpline for advice.
- After-the-Event (ATE) Insurance:
- This is purchased after a legal dispute has already started.
- It is often used in no-win, no-fee claims, particularly in personal injury and litigation cases.
- If the case is lost, the insurance covers court fees, expert reports, and the opponent’s legal costs, protecting the claimant from financial risk.
What Does Legal Expenses Insurance Cover?
Depending on the policy, LEI may cover:
- Solicitor’s fees and court costs.
- Costs of expert witnesses and barristers.
- Costs awarded to the opposing party if the case is lost.
- Legal advice through helplines.
Typical legal matters covered include:
- Employment disputes (e.g., unfair dismissal, redundancy issues).
- Consumer contract disputes (e.g., faulty goods or services).
- Personal injury claims (especially with ATE insurance).
- Property disputes (e.g., boundary issues, landlord-tenant conflicts).
- Tax disputes (in some policies).
What Legal Expenses Insurance Does Not Cover
Policies may have exclusions, such as:
- Criminal cases (unless related to employment).
- Divorce or family law disputes.
- Pre-existing disputes before taking out the policy.
- Cases with little chance of success (insurers often assess the likelihood of winning).
Do You Need Legal Expenses Insurance?
LEI can be useful if legal costs would be difficult to afford. However, before purchasing a policy, check:
- If you already have BTE cover as part of existing insurance.
- The policy limits and exclusions.
- Whether your case has a reasonable chance of success (most insurers require this).
Legal Expenses Insurance offers financial protection against legal costs, ensuring access to justice without significant financial risk. It is particularly valuable in employment disputes, personal injury claims, and contract disagreements. Book your no-obligation, fixed-fee initial consultation, either in person or by phone, to discuss in detail with an expert employment law solicitor.
Book your initial consultation with our Employment Solicitors in Birmingham. Freephone 0330 333 8797, request a callback or email info@wildings-solicitors.co.uk for specialist advice.
