Research shows that 70% of disputes involving legal protection insurance are settled amicably. We have summarised the most important aspects of legal protection insurance for you as a business manager.
70% of disputes (except those where cars were involved) involving legal assistance are settled amicably. Your legal protection insurer can therefore ensure that there is no need for legal action. This is a welcome gift for many business managers given the negative financial and commercial impact of legal proceedings.
Legal assistance is used to protect your interests in the event of a situation where you have suffered or caused damage.
Most legal protection insurers also have a legal contact line. You can therefore already find out about your rights before a dispute occurs.
If your legal protection insurer needs to assist you, it will defend your rights whether you are the plaintiff or defending party. An insurer will always try to reach an amicable settlement first because this is the cheapest and most efficient solution. If this is not sufficient and legal action is unavoidable, the legal protection insurer will bear all the costs.
Bear in mind that the costs are often capped, so always ask your insurer about any caps. Damage you have suffered or caused will not be compensated by your legal assistance. In such cases, you need to fall back on your other insurance policies or, in the event of a fine, your own resources.
Legal assistance insurance is often an additional cover for another insurance policy. Car insurance, fire insurance and family insurances are perfect examples of this.
The consequence of this is that you may claim legal assistance only in the event of incidents or disputes related to the main policy.
For example: the legal assistance associated with your car insurance policy will help you in the event of a traffic offence.
By taking out legal protection insurance for your company, you have the benefit that the scope of application is much broader than for individual insurance policies. The policy covers, as it were, the additional legal protection insurance policies missing in your insurance portfolio.
As an entrepreneur, you can be reassured that you will receive professional support in disputes across the full spectrum of your business activities. This gives you the assurance that you will not have to bear major legal costs yourself and that you can fully concentrate on what you do best: business.
Disputes in which legal assistance for sole proprietors provides you with support and covers the costs:
- The tax authorities contest certain expenses that you have declared as professional expenses.
- Your fire insurer refuses reimbursement because you supposedly made a serious mistake.
- You have a dispute with your service provider (e.g. accountant, IT engineer).
- The landlord of your commercial premises increases the rental price unilaterally.
- You were injured during an attempted theft at your office.
- Your customer believes that their contract has not been properly implemented and demands compensation.