But sometimes we find that the proposed lawsuit has no reasonable chance of success because: Clients purchase legal expenses insurance to cover legal expenses they may incur in pursuing litigation: Many policyholders choose to stay with the panel`s lawyer after initiating legal proceedings. However, some policyholders believe that only one person they have elected represents their interests with vigour and impartiality. For example, you may complain that the law firm you choose is in an inconvenient location. If clients have an LEI policy, they may have the right to have their legal problem handled by lawyers hired by their insurer, with the costs being borne by the insurer. Whether the LEI covers a client`s legal problem depends on the terms of the contract. If clients have an LEI, clinics should generally advise clients to be represented by taking legal action against their policy. Most «pre-event» policies only cover the cost of litigation if the event or dispute that gave rise to the lawsuit occurred or came to light after the policy began. The following rules apply to legal expenses insurance, with which advisors wish to familiarize themselves: The objective of this study was to analyse a sample of Financial Ombudsman Service (FOS) decisions on LEI complaints in order to produce a thematic report with summary figures, the main issues raised in the complaints and case studies. To conduct the study, we have 183 LEI complaint decisions issued by FOS between 2019 and 2021 (46 unconfirmed and 137 confirmed). The decisions were analyzed in order to identify the issues raised in the complaint, the nature of the legal issue involved, the reasons for FOS`s decisions, the outcome for the consumer, the remedy awarded and any questions of principle. But it does not cover all costs.
For example, amounts paid to outside experts for the preparation of the lawsuit or legal fees of the other party may not be covered. Thus, subsequent insurance can be taken out to cover the risk that the customer`s measure remains unsuccessful or only leads to a partially favorable cost decision. Get help resolving legal expenses insurance complaints. Policies purchased «before the event» protect policyholders in the event that legal action should be brought or defended in the future. An accountant carelessly fills out a client`s tax return, but the client does not discover it until a few years later, when a claim for unpaid taxes is made. The client believes that the legal action against his accountant is covered by the legal protection policy he has completed since he claimed unpaid taxes. The «event» is the negligent act that precedes the insurance. Even in cases where the policyholder was not insured for legal costs at the time of the negligent act, we may decide that the insurer must accept the claim. Indeed, in some cases, we decide that the period must run from the date on which the customer became aware of the problem, if the damage is not obvious at the same time as the cause of the damage.
There are other scenarios where we see complaints in the field of legal expenses insurance, including: Bettina worked for her local council as a planning officer. She decided to file a complaint against the Council for unfair dismissal. She therefore made a claim with her insurer under her legal fees policy. All insurers must be subject to the rules of the Financial Conduct Authority (FCA). This means that if you have a complaint against an insurer, you can refer it to the Financial Ombudsman Service. This is a free service available to you if you have already gone through your insurer`s complaint process. Legal expenses insurance is intended to cover uncertain risks, not unavoidable or existing events. Policyholders sometimes claim that disagreement with the legal advice of the court-appointed lawyer constitutes a conflict of interest. However, we do not consider these types of disputes to be conflicts of interest. If lawyers disagree on the chances of success, you will usually need to get legal advice from a qualified lawyer with relevant legal knowledge.
We would give more weight to the lawyer`s opinion than to the lawyer`s. To prevent policyholders from purchasing insurance coverage and claiming known impending litigation, some policies include a «moratorium period.» This means that the policyholder cannot make any claims for events that occur during the first insurance period. One of the most common complaints about legal expenses insurance is who chooses the policyholder`s legal representatives. «After the event» policies ensure legal action for events that have already taken place. They are usually removed at the time the legal action begins. These policies are used when there is no «pre-event» coverage or when it has expired. Prior to the event, legal expenses insurance policies may provide for two types of coverage: If the insurer has refused a claim, the insured may either appeal and/or lodge a complaint with the Financial Ombudsman Service FOS (see: www.financial-ombudsman.org.uk) We do not take into account the quality of legal advice. In England and Wales, clients who are not satisfied with the quality of legal services provided can address their complaint to the Legal Ombudsman. There are similar facilities in other parts of the UK. Harris & Harris will advise you on the best way to finance a court case. We need your help so we can look at all your options.
You may have legal expenses insurance (LEI) – also known as Before The Event (BTE) insurance – but don`t know it. Sometimes it is linked to other insurance policies. Sometimes it`s hard to tell if you`d be covered for the particular issue. Policies taken out «after the event» insure the policyholder if he has already decided to take legal action or defend himself and provide coverage against the payment of the other party`s expenses. These are usually stand-alone policies. If the insurer believes that a claim should be pursued, it is common for it to be referred to an outside law firm that sits on the insurer`s board of directors. Legal protection policies often give the insurer the freedom to choose which lawyers to appoint for advice and assistance until the start of legal proceedings – unless there is a conflict of interest. Insurers have lawyers on the lists that they hire regularly. If the court case is still ongoing, we will review carefully before asking you to find other lawyers, as this may result in further delays.
We will check whether you have fulfilled your obligations as an insurer correctly and whether you have treated the damages fairly. This includes checking the terms of the policy and whether you have acted on the advice of a suitably qualified legal advisor. As an insurer, you have a group of lawyers with the appropriate expertise to handle disputes. They control the costs of these lawyers through agreed payment rates. Legal expense policies require a group of lawyers before deciding that litigation is necessary. You are free to choose the lawyers you wish to appoint at the beginning of the legal claim. There are several factors to consider when choosing a lawyer, including: During initial contact with clients, advisors should determine whether they have purchased legal protection insurance (LEI) or insurance prior to the event. The LEI covers legal fees related to specific legal issues and/or litigation.
An insurer other than the household insurer usually takes over the legal protection section of the policy. This avoids a conflict of interest and spreads the risk. Most policies include a clause stating that the policyholder must inform you as soon as they become aware of an event that could give rise to legal proceedings. If you sell a policy after the event, assess whether the legal action poses a risk that you are willing to take. This means that policies can contain conditions that can be specific and unusual. In many cases, the answer is yes. Legal protection insurers will usually try to refer you to a company on their panel. You don`t have to accept that. The financial ombudsman says this is one of the most common complaints about legal expenses insurance. He states: «Policyholders believe that only someone they have elected will represent their interests vigorously and impartially. In many cases, they do not know whether a lawyer chosen by the insurer represents their interests or those of the insurer.
And they often complain that the law firm chosen by the insurer is in a less favorable location than their favorite firm. We see problems when a consumer switches from one legal protection policy to another insurer and without interruption of the coverage of a «claimed» legal protection policy. When Barnaby filed a claim for his legal protection policy, he wasn`t happy that his insurer chose lawyers who lived away from him. We took a look at it to look at the policy. Advisors: Any stage of litigation, including writing a letter to an adversary, may lose eligibility for insurance coverage, subject to the conditions of the LEI. Visit the Financial Ombudsman`s website in www.financial-ombudsman.org.uk If a client is successful in their legal expenses insurance claim, they can cover legal fees, which typically include: Learn more about the Financial Ombudsman`s approach to insurance disputes in www.financial-ombudsman.org.uk If the main insurer also takes out legal expenses insurance, it usually entrusts the management of this coverage to a Claims Processor. to spread the risk.