Legal expenses insurance (LEI), also known as legal protection insurance (LPI) or simply legal insurance, is a type of insurance which covers policyholders against the potential costs of legal action brought by or against the policyholder.
Your Legal Expenses cover may be provided in the form of a stand-alone Policy or, as a section within a wider cover.
Legal expenses cover is subject to assessment by Insurers and reasonable prospects of success. If the insurer considers that a claim should be pursued, the normal practice is for it to be passed to an external firm of solicitors on the insurer’s panel. This firm should have knowledge of the relevant area of law – and their opinion as to the prospects of success is usually a sufficient basis for the insurer to agree (or refuse) to fund the legal claim/defence.
Insurers will require early notice of a Legal Expenses claim and in advance of instruction of any alternative representation.
Given the sensitive and technical nature of most legal expenses matters, Insurers require direct contact with the Policyholder for their explanation of the dispute. For this reason, brokers are unable to liaise with Insurers on your behalf throughout the claim. For this reason, you will need to report the matter directly to your Legal Expenses provider using the helpline number recorded in your policy documents.
Legal Expenses Insurers operate strict policy around instruction of Solicitors, usually preferring to appoint from their panel. For this reason, you should not appoint your own representation without taking guidance form Insurers as your fees may not be covered under the Policy.
For assistance with notifying a Legal Expenses claim against your policy, please contact your dedicated Claims Executive or call 02920 887733.