Traditionally, commercial legal expenses insurance has been sold as a separate and independent policy. There are a handful of insurers in the UK that offer this coverage, the main one being DAS.
To obtain coverage, you must declare the usual information about your company, your location, your activities, your wager list and your turnover. Then a policy based on this information will be purchased. It is unlikely that you need legal expenses coverage on your own. Therefore, your commercial insurance broker will usually offer this along with a standard commercial insurance policy.
About commercial legal
Nowadays, however, more and more insurers include this coverage as part of their standard policies, whether for pub, store, restaurant, office or hotel. The current coverage is provided by the insurer of personalized legal fees, but will be marked for the commercial insurer that sells the package. In the case of a claim, you must contact the insurer directly to obtain the legal fees.
The type of coverage provided must include at least the coverage of the Labor Court and the Household Income Surveys.
Labor courts, even if you think that will not happen to you, are on the rise. Year after year, the number of registered cuts is increasing. As an employer, you have a duty to care for your employees in case of injury, illness or illness. This is covered by the Employer Accountability Act (Compulsory Insurance) of 1969, with many revisions. You must have current coverage, with a minimum indemnity limit of £ 5,000,000.
However, employer liability insurance does not cover labor courts. Not only does he have the duty to take care of his employees for injuries, etc., but he must also ensure that they are not harassed, discriminated against or treated differently because of their gender or sexual orientation. You are also required to follow the correct and current process regarding any dismissal or dismissal.
As with all insurance and coverage policies, there will be certain terms, conditions, excesses and guarantees that must be met for the coverage to be effective and in effect. Too often we see claims filed by commercial legal clients after the event. Each insurance policy will have, somewhere in the drafting, the obligation to notify the insurers about any “potential” claim within specific time periods. The important point about this is that insurers have years and years of experience in handling claims. Although, in the world of intermediation, we can sometimes feel that they are slow, they know what to do and how to keep the costs of settlement of claims as low as possible.
What you should do is check your wording of the current source very carefully. If you have coverage, check the level of legal fees you have. If you do not have coverage, we recommend that you make sure you are in your place as soon as possible. Whatever the quality of your relationship with your employees, unfortunately you should always consider the worst case scenario. In the worst case, an employee may choose to go to court regardless of whether the claim is valid or not. Your policy will cover legal defense costs and possibly the cost of any agreement made to your current or former employee.