Legal expenses/lawyer insurance cover to pay your legal costs in a dispute
Disputes in various areas, which are resolved with legal assistance and ultimately often end in front of the judge, are not uncommon. The financial burden of litigation should not be underestimated because the amount in dispute can be high and drag on until a final judgment has been reached. Until then, the costs need to be paid upfront. Legal expenses insurance can also be used against insurance companies that refuse to pay claim payments or other contractual agreements.
The risk of getting into a legal dispute has become quite high these days. Dealing with customers, suppliers, but also with social insurance institutions, organizations, and authorities can lead to legal disputes, which are associated with high costs and trouble.
The following examples should help to decide and explain the coverage possibilities.
- Housing and property legal cases
- Labor legal cases
- Traffic legal cases
- Private contract legal cases
- What does legal expenses/lawyer insurance cover?
- Does the lawyer’s insurance cover the legal costs in the event of a divorce?
- Which possible legal protections are included in the lawyer insurance?
How much does a lawsuit in Germany cost?
We have put together a few examples based on common legal disputes in Germany in the table below. The values in dispute were based on current average values according to DeStatis, or fictitious travel prices.
| Legal insurance protection area | Legal case examples | Value in dispute | Cost* |
| Housing and property legal protection | Reduced rent due to mold in the flat | 10,269 € | 4,933 € |
| Eviction due to personal usage of landlord | 5,868 € | 2,947 € | |
| Labor law protection | Protection against dismissal and dispute over the reference letter | 17,012 € | 3,295 € |
| Lawsuit for two pending monthly salaries | 8,506 € | 2,392 € | |
| Contract legal protection | Fake watch bought at auction | 2,700 € | 1,747 € |
| Deficit of travel booking | 2,400 € | 1,747 € | |
| Traffic legal protection | Reversal of the purchase contract of defective new car | 37,000 € | 8,310 € |
| Proceedings against a fine over 60 € and point in Flensburg | 1,300 € | 860 € |
Housing and property legal cases
As a tenant sitting in the winter in an apartment where the heating is not working, this is trouble. Maybe this has even caused mold. If the landlord does not immediately repair the heating, a rent reduction is a possible step. Due to a change in jurisprudence, enforcing this in court costs three times as much as in 2012. With a value in dispute of around 10,000 euros, in the event of a defeat, you now must expect around 5,000 euros in legal costs. With appropriate lawyer, criminal, and law insurance, you would not have financial risks and could concentrate on executing the legal steps without fear of the legal costs.
Labor legal cases
The employer has given notice of termination, and legal action is to be taken. The costs for a dismissal protection lawsuit, including disputes over a job, cost around 3,300 € if the value in dispute is around 17,000 € (the amount will be generated based on the salary). Even if a party wins in court, because in labor law, each party bears its own costs in the first instance, Lawyer insurance protects you from these costs.
Traffic legal cases
Having a traffic accident and the other party not wanting to accept their fault leads to a legal dispute. In this case, a private lawyer insurance will cover the legal costs. For example, in a dispute worth 37,000 euros, court costs and attorney fees for both sides can amount to 8,300 euros. And this amount needs to be paid in the event of a clear process defeat.
Private contract legal cases
While encountering travel shortages during a vacation, but the organizer does not want to remedy them easily or compensate appropriately. Through a legal dispute with them, a similarly high-cost risk is there, even with a small amount in dispute of 2,400 euros (on average 1,747 euros). These legal costs keep many people from filing a legal complaint. With legal expenses insurance, can be contained the risk.
Clients can also use private lawyer insurance against an insurance company if the insurer does not pay for a contractual service despite our intervention as insurance broker. It can become very important, especially in occupational disability insurance, since a few percent difference in the medical report determines if you receive the disability pension or not.
Sicher Sicher only offers occupational disability insurance from providers who are qualified. The suggestion is based on our experience and recommendations from independent institutes. However, we also know that things can change and there are no guarantees for the future. Penal and law insurance is therefore a very sensible insurance protection to be able to enforce your rights.
To get an offer, please fill out the form below.
What does legal expenses/lawyer insurance cover?
Penal and law insurance is basically not a single insurance contract but a combination of different, separate legal covers with which clients can protect themselves against the financial costs of legal disputes within the scope of the selected coverage. In the family penal law insurance, the spouse and their kids, who have not concluded their first professional or academic education and are registered under the same address, are covered as well. We also offer corporate lawyer insurance for self-employed individuals and companies, which can also include private legal risks if selected.
Does the lawyer’s insurance cover the legal costs in the event of a divorce?
When it comes to divorce, legal protection insurance usually only covers the costs of legal advice by a lawyer. The client can learn about his or her own rights and obligations during a legal consultation. The divorce as such, as well as all other family law disputes brought to court, are not covered by the insurance. If a client takes advantage of an initial consultation and then instructs the lawyer to represent the client in court, the lawyer must bill the initial consultation separately so that the legal expenses insurer reimburses the costs. However, there are insurers who also offer legal protection in divorce matters and pay for lawyers and court costs. Usually, there is a waiting period of 3 years for divorce and family affairs.
To cover the risks, you must also select the component for marriage law protection and divorce law protection with private legal protection insurance. Of course, insurance fees are increasing, considering these risks.
Which possible legal protections are included in the lawyer insurance?
It depends on the specific risk of the client and the individual’s wish for coverage. Passive legal protection insurance is also integrated into private- or corporate-liability insurance.
For a consultation, please request an appointment in advance at service@sichersicher.eu.