Nowadays, some policies include commercial legal expenses. The main aspects of the cover provided will usually differ, but in the main you are looking at some form of employment law protection, Inland Revenue and VAT inspections and a few others, such as property protection.
This blog is not about the types of cover provided, but what you should do in the event of a claim, in particular for employment law protection. This is where an employee raises a grievance and this leads eventually to an employment tribunal. The costs of this process can be exceptional. We know as we have been through it. But, it is all the more worthwhile when you find out that you were right all along and they ex employee loses the case.
If you have legal expenses insurance in place this is to be treated exactly that same as every other form of business insurance . As soon as you are aware that there is something that will either lead to a claim or may lead to a claim, you must notify your insurers. This really should be at the grievance stage. This is where you are aware that something may go wrong in the future and there may be a need to rely on your cover. Do not, under any circumstances decide to appoint your own solicitors and then submit a claim. The insurers of this type of cover have their own panels of solicitors and if there is a valid claim, then this is how matters will proceed. You will not be able to use your own solicitors, unless there is prior agreement between the insurance company and your own solicitors. This only happens in a very small percentage of cases.
If in doubt, speak to your independent business insurance advisor at Top Marques Insurance on 01543 373700.
