Legal Expense Liability Insurance

This cover is of fairly recent origin and is still evolving as society become more and more litigatious. It is in respect of fees and advice incurred to pursue a civil action to recover damages to personal injury or death of the insured person subject to a limit. The cover includes resource to a legal advisory service.

It was originally offered as an extension in liability policies to meet the cost of fighting or defending specified legal actions but is now offered for a wide range of other legal costs such as;

• Defense in disputes with employees and /or Ex- employees arising out of contracts of employment.
• Defense if the firm comes under criminal prosecution e.g. for breach of health or public revenue laws
• Defense or pursuit of customer or suppliers in breach of of contracts
• Defense of directors and managers in criminal prosecution.
• Pursuit of claims in respect of damage or threat of damage of the firm properties
• Defense in disputes relating to title of firm’s properties such as land.

The land is subject to the following conditions;

• The insured must appoint lawyers and give them proper instructions without undue delay.
• No payment is made in respect of fines and penalties
• There is a limit on the insurer’s annual liability
• The offence for which legal costs are payable must be committed in the cause of the business.
• There is no indemnity for deliberate or intentional acts or omissions.
• There is no indemnity for cases heard outside the jurisdiction prescribed in the policy
• Immediate notice should be given to the insurers in respect of any summons