This is a way of protecting yourself against some of the costs involved when funding a legal dispute, which can be very expensive.
The cover often provides for legal advice helplines, as well as the costs of appointing solicitors, expert witnesses and representation if the claim goes to court.
It can be bought along with some insurance policies. For example, some companies selling motor and household contents insurance may include this cover as a free add-on, while others give you the option to attach the cover for an additional premium.
Check
- if you’ve decided you want this type of cover, check your motor or household contents insurance policies – you may already have this cover written into your insurance.
- you should also check your insurance policy documents carefully to make sure you understand what you are covered for, the level of cover and any limitations that apply. For example, in most circumstances you may not be able to choose which lawyer is instructed – the insurance company usually appoints a lawyer to act for you.
- this type of cover normally allows the insurer to withhold or withdraw funding if there isn’t a ‘reasonable prospect of success’, which usually means that you have a 51% or better chance of winning or defending your case.
