Commercial Legal Expenses Insurance
Commercial Legal Expenses insurance now comes as standard with many motor trade insurance policies, but you need to be aware of what it exactly covers, or more to the point what it doesn’t. Generally these products have very wide cover but there are areas that could cause you problems. When you understand exactly what these insurance policies are covering however you realise just how valuable they are to you business if used correctly.
As a business you are subjected to all types of litigation, it can come from anywhere, but are you prepared when it does?
What does Commercial Legal Expenses Insurance cover?
The following is just a summary of the covers available and is for infomation only, please refer to policy booklets or you insurance adviser.
– Criminal Defense
– Police and Health & Safety
– Property Protection
– Employment Defense
– Collections Agency Investigations (Inland Revenue & VAT)
– More covers available £50,000, £100,000, £250,000 and above
24hrs access to Advice Services, providing over the phone advice on EU law, employment, contract disputes, bad debt, property protection and more.
Additional Covers are available, these don’t generally come as standard though, the two main ones are Contract Disputes and Debt Collection!
Cover under Commercial Legal Expenses Insurance for the Motor Trade HOWEVER does have a few restrictions, hence a few points to bear in mind –
Cover for certain parts of the policy does not automatically start the moment you take out the cover, Employment Law for instance where some policies don’t provide cover within the first 60 or 90 days.
Commercial Legal Expenses will also not indemnify you for any ongoing disagreements.
One of the most important points is that most Commercial Legal Expenses will have something called a “prospect of success clause”, this is exactly what it states, there must be “in the insurers opinion” a reasonable prospect of you winning the case, if not the insurer won’t indemnify you, they may assist you but thats probably as far as they will go.
Most intermediaries will offer an additional protection in the form of Uninsured Loss Recovery, depending on the intermediary they may charge you an additional premium for this, before you consider taking the cover ensure that Uninsured Loss Recoverey (ULR) is not automatically included with your insurer, some do provide this. RealAutomotive supplies the cover for FREE
Recovery of your uninsured losses following a Non-Fault accident. We give Uninsured Loss Recovery away as standard with all Motor Trade Policies.
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