Legal expenses insurance / Lawyer insurance cover to pay your legal costs while a dispute
Disputes in various areas, which are resolved with legal assistance and ultimately often before 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 are only in advance. This legal protection insurance can also be used against insurance companies that refuse to payout 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, other organizations and authorities can lead to legal disputes and these are sometimes associated with high costs and trouble.
* Here are some examples of claim cases. The Legal protection for the different risks to cover in the penal & law insurance.
1. Housing and property legal cases
Are you a tenant and the heating in your apartment is not working? Maybe this has even caused mold. If the landlord does not immediately repair the heating here, a rent reduction is the logical step. Due to a change in the jurisprudence, enforcing this in court costs three times as much as in 2012. With a value in dispute of around 10,000 €, in the event of a defeat, you now must expect around 5,000 € legal costs. With appropriate legal protection insurance or penal & law insurance, you would not have this risk and could concentrate fully on the processing without fear of the legal costs.
2. Labor legal cases
Your employer has given you the notice of termination and you want to take actions against it? The costs for a dismissal protection lawsuit, including disputes over a fair job reference, cost around 3,300 € today if the value in dispute is around 17,000 € (The amount will be generated mainly of the agreed salary amount). Incidentally, even if you win in court. Because in labor law, each party bears its own costs in the first instance. These have increased by a quarter since 2012. Legal protection insurance also protects you from these costs.
3. Private contract cases
You encountered travel shortages during your vacation, but the organizer does not want to remedy them easily or compensate you appropriately? Through a legal dispute with him, a similarly high cost risk hangs over you even with a small amount in dispute of 2,400 euros (on average 1,747 euros). This too has increased by 25 percent in the past six years. An effect that causes quite a few disappointed holidaymakers to shy away from complaining.
With legal protection insurance, this risk can also be contained.
Incidentally, you can also use this contract legal protection of you private penal & law insurance cover against an insurance company if the insurer does not want to pay a contractual service despite our intervention as your insurance broker.
This can become very important, especially in the area of occupational disability insurance, which involves a few percent of the occupational disability or non-occupational disability, and especially expensive, since the value in dispute relates to the required pension amount.
We only offer occupational disability insurance from providers who, based on our experience and tests carried out by the Stiftung Warentest and other independent institutes, are recommended.
However, we also know that things can change and that there are no guarantees for the future. The penal & law insurance is therefore a very sensible insurance protection to be able to enforce your rights with a worldwide cover.
4. Legal traffic cases
You bought a new car, but unfortunately it has one or more defects. Do you request that the purchase be reversed, but the dealer is not willing to accept? If there is a dispute in the amount of 37,000 euros, the court costs and attorney fees for both sides can total to around 8,300 €. This calculation awaits you in the event of a clear process defeat. In this case study, too, costs have increased by around a quarter since 2012.
Good to know if you have a private lawyer insurance cover behind you and taking over the legal costs. Thus, the financial burden from litigation can significantly reduce liquidity. As an experienced Claim Pro insurance broker, we create an individual risk analysis that reveals all risks and covers all necessary legal risks of you at the moment of consulting.
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What does the legal expenses insurance or the lawyer insurance cover?
The penal & law insurance is basically not a single insurance contract, but a combination of different, separate legal covers that private individuals can protect against the financial consequences of legal disputes within the scope of their risks.
Family members are of course insured under legal protection in the course of a family penal 6 law insurance. We also offer corporate legal protection as an corporate penal & law insurance for self-employed individuals and for companies, which of course can also include the private lawyer insurance .
The individual penal & law insurance cover relate to various service areas such as contract law, labor law, traffic law, damage compensation law, data protection, anti-discrimination legal protection, internet legal protection and claims management and offer a comprehensive package of litigation protection.
Which possible legal protections are included in the penal & law insurance?
It depends on the specific risk of the customer and the customer’s individual wish for particular coverages. A passive legal protection insurance is also integrated into a private or corporate liability insurance.
Legal protection insurance benefits
The penal & law insurance mainly covers the payment of legal fees, the costs for experts and the payment of court fees.
The effectiveness of the penal & law insurance is measured on the basis of the sum insured, because this indicates the maximum performance of the insurer in the event of a legal claim case and should therefore fitting to the individual risk of the customer.
Does the lawyer insurance cover the legal costs in the event of a divorce?
No, that is not correct. When it comes to divorce, legal protection insurance usually only covers the costs of legal advice if it’s been selected to cover. You can find out about your own rights and obligations during such an appointment. The divorce as such, as well as all other family law disputes brought to court, are not covered by the insurance cover. If you take advantage of an initial consultation and then instruct the lawyer to represent you 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.
To cover these risks you must also select the component for marriage law protection and divorce law protection with private legal protection insurance. Of course, the penal & law insurance fee is increasing, in case of including these risks. There is also another catch: For legal cases in matrimonial matters, there is a waiting period of two to three years depending on the provider after applying the penal & law insurance.
The same applies to legal issues related to maintenance disputes. These can also be insured with additional premiums and waiting periods. In terms of advice, it is difficult as an insurance broker and an outsider to give optimal advice regarding protection or not. Therefore, this decision can only be yours.
If you are also seeking consulting and information for health insurance options as a foreigner in Germany, you can go to our special website for health insurance products for Expats Sicher Sicher to Stay.