Insurance is a form of risk management that is often used to protect an individual or business against the risk of loss. It is also defined as being relocation of risk from loss from one entity to another and they receive payment in return. The insurer is known as the company that sells the insurance or the insured. The insurer is also the person or business that is purchasing the insurance policy. It is also important for these entities to understand the importance of having legal expenses cover.
What Is Legal Cover?
Legal insurance and legal cover helps to protect policy holders from the potential cost associated with legal action that is brought against the holder of the policy and other entities. Legal expenses cover is supposed to provide coverage that is more affordable with the fees that are charged by a firm that is providing representation in unexpected legal matters.
Some of the claims that can be included in this type of cover include:
• Criminal charges
• Human rights complaints
• Disciplinary actions
This type of coverage is non-discretionary if the claim made against the insurer is covered in the conditions of the policy. Liability insurance can also offer protection in different types of legal liabilities that can offer coverage for other types of predictable legal actions such as power of attorney and drafting of wills.
Other reasons for having this type of cover are:
• Criminal matter
• Civil matters
• Family matters
• Unfair dismissal from work
• Sexual harassment grievance
Usually, the expense cover that is provided for legal expenses assists policy holders who may incur claims against them for consumer disputes, personal property issues, personal injury cases and employment issues.
It is often recommended that policy holder accept and respect any settlement that is offered. Once the policy holder places a claim against the policy, the insurer will be able to assess the claim in-house and determine whether or not the claim is arguable. However, when the insurer decides that the claim does not have a high chance for success, the policy holder will be notified that the insurer is not ready to accept the policy holder’s claim.
What Is Before And After The Event Insurance?
This type of expense cover can be categorized into before the event and after the event cover. Policy holders choose before the event cover to protect themselves from unforeseen events. It can include the costs of attorneys, witnesses, court fees, fines and legal costs for the other side. This premium is usually paid on an annual basis to the insurance company.
After the event cover is for after an event has occurred. Events such as accidents and personal injury cases are covered through this type of policy. This cover is often used by those who do not have before the event cover.
Legal expenses cover is used to handle a wide range of disputes. It also offers many advantages to policy holders and helps to keep them protected from numerous legal actions.