Why Should You Get Private Legal Expense Insurance?
Legal expense insurance may help limit a family’s exposure to the potentially crippling cost of unforeseen legal action. It provides affordable access to legal information and representation in court when members of a family might otherwise be deterred from exercising their legal rights. Depending on the type of claim, this may include defence costs, pursuit costs or both.
The justice system can be complex and expensive. Just an hour of a lawyer’s time can cost hundreds of dollars and going to court could cost thousands. It may make financial sense to protect ones family and their legal position.
Private Legal Expense Insurance Product Offers Three Key Benefits:
Legal costs – If legal action is necessary, legal expense insurance products are there to cover some of the legal costs and expenses of certain future legal actions and may include cover for adverse cost orders.
Resources – depending on your insurer, policy holders have access to many helpful legal documents assisting them with their legal needs. All these legal documents have been drafted by third party lawyers, and can be easily customised. These documents contain general information or are in the form of examples and templates.
Legal Information Helpline – policy holders would have access to a confidential legal information helpline for general information about Australian legal matters. The call will be referred to a legal service provider who will be responsible for the information provided. Information will be provided verbally and will not be put in writing. This helpline cannot provide advice in respect of a dispute a policyholder has with the Insurer.
Summary of Cover*
Property/goods damage – If someone damages, trespasses on or causes a nuisance to an insured’s property.
Tax Protection – If an insured faces an investigation by the ATO.
Personal Injury – Pursuit of compensation where a person is responsible for causing injury to an insured (but not workers compensation).
Family Law (2 hr consultation) – Pursuit of or response to a court application for orders relating to the residence of, time with, or welfare of, the insured’s children as part of divorce proceedings.
Private Legal Expense Insurance (2 hr consultation) – If the insured is appointed as an executor of an estate and a claim is made against the estate alleging inadequate provision under the will.
Tenancy disputes (2 hr consultation) – If the insured has a dispute about their private lease.
Consumer Contracts (optional) – If the insured has a dispute over unsatisfactory goods or services.
Employment (optional) – If the insured is wrongfully dismissed or has a disagreement with their employer
*this summary is subject to which insurer you use and which product you choose.
What happens if …
Employment example scenario:
Policyholder A’s employer told her that she was no longer needed at the office she had worked at for more than eight years. Several of her colleagues, with similar roles, were kept on even though they had not worked for the company for as long. Her employer only paid her until the end of the week she left. The insurer appointed a lawyer for Policyholder A who negotiated a redundancy package for her. Her legal fees were covered by her legal expense insurance policy, less any excess.
Property example scenario:
Policyholder B’s neighbour had built a wall which encroached onto his garden. After failing to reach an agreement with his neighbour about removing the wall Policyholder B contacted their insurer or broker and was appointed a lawyer to act for him. Following protracted correspondence, both sides agreed to mediation, leading to an agreement for the wall’s removal where it had been built on Policyholder B’s land. Policyholder B paid the excess and the lawyer’s fees were covered by his legal expense insurance policy.
** These are examples of how the product works only and are not testimonials of actual customers or situations.
It is always recommended you speak to a qualified insurance broker to work out the best cover for your situation and top ensure you do not end up with an inferior product.