All too often, we sit across the table from clients who have suffered a wrong or injustice however we have to advise that they cannot proceed because they have no means to pursue a claim.
They may have been physically harmed through medical negligence, psychologically harmed through bullying or harassment in the workplace and/or financially harmed through unfair dismissal. This creates frustration and despair and sometimes anger at their partner or broker who did not opt to include Legal Expense Insurance (“LEI”) as part of their home insurance.
Legal Expense Insurance (“LEI”) can protect you from or help you pursue every day legal disputes such as employment law claims, personal injury claims or disputes involving faulty goods and/or services. LEI will often cover up to £100,000 of legal costs and outlay. When we are assessing a case, one of the first questions we ask is whether the client has LEI cover. It is no secret that bringing a claim or defending a claim can cost tens of thousands of pounds therefore having LEI in place can be invaluable for a client and can relieve the financial burden of a claim. The cost of defending or bringing a claim to an Employment Tribunal quite often costs in excess of £20,000. This figure can be a combination of solicitor’s/barrister fees, and expert fees for medical reports or financial reports which can all be covered in a LEI policy. LEI covers all occupants in a home so it can cover claims on behalf of children or those who co-habit.
McCay Solicitors deal with matters involving employment law, personal injury cases and litigation, we have acted for many clients who have been entirely covered from the start to end of their claim who have never received an invoice from us. We correspond directly with their insurance provider and update them on costs of the case. As such we would always recommend having LEI in place as you never know when you might need to fall back on that safety net.
If you have a claim and are covered by LEI, your solicitor will usually write to the insurance providers outlining the “reasonable prospects of success” of your claim. The prospect of success usually has to be over 51% in order for you to receive indemnity on the policy. Quite often your provider will try to encourage you to use their panel solicitor however, you do have freedom to choose your own solicitor.
Usually, LEI can be purchased as an optional add on to your home insurance policies, however it can also be purchased as a standalone policy and cost as little as £10 per month. There are often times when people are unaware that they are already covered so it is important to check your policy as some insurance providers include LEI into the policy with no extra cost.
We at McCay Solicitors strongly advise acquiring LEI and we have set up our own Employer Protect Scheme insuring employers against expensive claims.
Pursuing and/or defending claims has the potential to have catastrophic financial effects on both individuals and businesses alike. Therefore, having LEI ensures that justice is accessible for all by removing the financial barrier that comes with bringing court and/or tribunal claims.
If you wish to speak to us about anything contained in this article please drop me an email: gareth@mccaysolicitors.co.uk