For a company, it is important to assert your rights and benefit from a good defence in the face of any disputes you may encounter in your private or professional life. That's why it's essential to take out professional legal expenses insurance. This article will help you to obtain all the information you need to make the best choice of insurance.
Professional legal protection: what is it?
Legal protection insurance is a scheme whereby the insurance company defends and represents the insured company. It enables companies to enforce their rights, whether to defend themselves in a dispute with an employee, a partner or a shareholder, or to initiate legal proceedings.
Legal protection insurance is aimed at all businesses, whether large or small. It should also be said that professional legal protection allows you to settle company disputes or cover the costs arising from them. In terms of how it works, it is based on the same principle as legal protection insurance for individuals, but with cover that is much more tailored to professionals.
What cover is included in legal expenses insurance?
Most insurance companies offer general legal protection to businesses. This covers most of the company's activities and may include :
- Coverage for the insured's criminal defence
- Recourse for policyholders seeking compensation for loss suffered
Insurers may also offer several types of legal protection cover. However, these are segmented to cover very specific areas, such as tax or social security disputes.
What services are included in legal protection insurance?
The quality of the professional legal expenses insurance policy has a strong influence on the scope and diversity of the services provided. In most cases, these types of policies provide :
- Access to a legal advice platformDispute resolution: this type of service can be particularly useful when it comes to settling disputes amicably with customers, employees or a subcontractor. This means that any dispute resolved preventively can save considerable time.
- A professional negotiation serviceThis is a method of contacting one of the parties directly in order to find common ground. The aim is to avoid lengthy and costly procedures as far as possible.
- Reimbursement of defence costs incurred by the company: It has to be said that a company never has a guarantee that it will be reimbursed for the cost of the proceedings, even if it wins the case. These costs obviously include the lawyer's fees and the payment of expert and counter-expert reports.
Taken together, these services make professional legal protection insurance particularly advantageous for a company, helping to avoid a number of disputes.
Professional legal insurance: multi-risk or specific insurance?
When a company wants to take out professional legal expenses insurance, there are two options.
Firstly, they can take out comprehensive business insurance, which covers the integrity of their premises and IT equipment, as well as legal protection for attack or defence. A multi-risk policy is therefore undoubtedly the best solution for companies and the self-employed looking for quality assistance in court. It is also well suited to companies looking for appropriate cover in their day-to-day business.
Secondly, when a company is already covered by insurance, it is possible to take out specific legal protection insurance. This is by definition the most economical solution, and provides effective protection in every respect.
How do I take out professional legal expenses insurance?
Unlike civil liability insurance, professional legal expenses insurance does not pay compensation to third parties for damage to property or personal injury. Only costs relating to legal proceedings are covered.
Professional legal expenses insurance can be taken out either as part of an umbrella policy or as a stand-alone policy. It can also be provided through other services such as membership of an association, a credit card, etc. Whatever the case, it is important to check the guarantees carefully.
Legal protection: what are the limits and exclusions of cover?
It's important to remember that legal expenses insurance is only there to help a company in case of need. As a result, it should not be used indiscriminately to deal with a company's disputes. Most insurance policies therefore include a number of limits. These include a ceiling on lawyers' fees. This means that the company reserves the right to choose any prestigious lawyer, but must ensure that the amount of the lawyer's fees does not exceed the ceiling set. It should be noted, however, that this ceiling varies to a greater or lesser extent depending on the nature of the dispute.
In the same way, there is an overall ceiling which is agreed when the contract is signed and which relates to all the cases handled over the year. In addition, a minimum intervention threshold is often stipulated in the protection contract. Finally, professional legal protection may be subject to a geographical restriction (a specific country, zone, etc.).
Put your trust in specialist companies
We regularly advise you to take out this type of insurance with a specialist company. They will be able to provide you with expert advice before taking the necessary legal action.
What's more, specialist companies often have teams of legal experts entirely at your disposal, and are completely independent of your insurer. This means you can be defended with complete objectivity in the event of a dispute.
Don't hesitate to ask for a quote on our site to find the best professional legal protection insurance for your business.
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