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What is Legal Expenses Insurance?
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 Legal disputes are often costly and stressful to pursue or defend. Many people are deterred from taking legal action because of the financial risk and uncertainty of the outcome. This is where legal expenses insurance (LEI) can help.
Unlike conventional insurance, LEI does not make a direct payment for a claim. Instead, the insurance covers the legal costs involved in pursuing or defending a claim. Legal costs include the appointment of solicitors, barristers and expert witnesses. In many cases, the LEI provider manages the claim from start to finish.
Legal disputes are often costly and stressful to pursue or defend. Many people are deterred from taking legal action because of the financial risk and uncertainty of the outcome. This is where legal expenses insurance (LEI) can help.
Unlike conventional insurance, LEI does not make a direct payment for a claim. Instead, the insurance covers the legal costs involved in pursuing or defending a claim. Legal costs include the appointment of solicitors, barristers and expert witnesses. In many cases, the LEI provider manages the claim from start to finish.
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Legal Expenses Cover Explained
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Businesses of all sizes have to operate in an increasingly complex legal environment. Recent years have seen significant rises in business legislation in both Ireland and Europe. Keeping up with the latest changes can be a full time job for solicitors and legal expenses insurers.
The cost of defending your company’s legal rights is also increasing, with few organisations able to afford the luxury of an in-house lawyer. Even the cost of dealing with relatively minor problems can easily run into thousands of Euros, and this does not include the amount of management time wasted or stress caused by such matters. Growing public awareness of legal rights and an increasing willingness to take legal action against an organisation compound the risk faced by businesses in Ireland today.
Legal fees, compensation awards and assessments following revenue audits can all undermine the financial stability of your business. In this changing commercial climate, a wide ranging legal expenses insurance policy is essential if your company is to protect itself against all the potential legal costs it may face.
The DAS Commercial Legal Protection policy offers extensive cover in the main areas where legal disputes may arise.
Businesses of all sizes have to operate in an increasingly complex legal environment. Recent years have seen significant rises in business legislation in both Ireland and Europe. Keeping up with the latest changes can be a full time job for solicitors and legal expenses insurers.
The cost of defending your company’s legal rights is also increasing, with few organisations able to afford the luxury of an in-house lawyer. Even the cost of dealing with relatively minor problems can easily run into thousands of Euros, and this does not include the amount of management time wasted or stress caused by such matters. Growing public awareness of legal rights and an increasing willingness to take legal action against an organisation compound the risk faced by businesses in Ireland today.
Legal fees, compensation awards and assessments following revenue audits can all undermine the financial stability of your business. In this changing commercial climate, a wide ranging legal expenses insurance policy is essential if your company is to protect itself against all the potential legal costs it may face.
The DAS Commercial Legal Protection policy offers extensive cover in the main areas where legal disputes may arise.
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Click on any of the following questions for more information
  What is Legal Expenses Insurance? |
DAS helps individuals and companies alike meet the cost of taking legal action or defending their rights if they have a dispute with another party by providing insurance designed to meet these costs.
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Motor - we will endeavour to recover uninsured losses, such as compensation for injuries from the person who caused the accident.
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Personal - we can protect against a variety of potential disputes, including employment problems, bodily injury and contract disputes.
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Commercial - we can pursue or defend legal rights in a wide range of business related disputes, including employment disputes and awards, legal defence, property and tax protection. We also provide an online employment manual which gives up-to-date advice on the main areas of Irish employment law.
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| If I have a legal problem before my policy starts, will this still be covered? |
Matters which you are aware of before the start of your policy are excluded. |
If I speak to the legal advice helpline, does this automatically trigger a claim?
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If you call the legal advice helpline to discuss a problem that might lead to a claim, it is important to note that, due to the confidential nature of the service, a telephone call to the legal advice helpline does not register a possible claim under the policy and you will still need to contact us for a claim form. |
| My policy suggests that some disputes may be ‘negotiated for’ rather than simply pursued or defended in court. Why is this? |
It is often more beneficial for both parties to try and reach a settlement rather than go to court which is both stressful and time consuming. The majority of legal disputes are in fact settled by negotiation. We always provide the most appropriate solution to your legal dispute which may well entail entering into negotiation as the fastest and most effective way of resolving a dispute. |
| What do ‘legal costs’ include? |
This will include things like the solicitors’ or barristers’ fees and charges for disbursements, not to mention the opponents costs should you lose and be liable to pay them. |
What happens if I am not happy with the way the appointed solicitor is dealing with my claim?
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If there is a disagreement about the handling of a claim another suitably qualified person can be agreed upon to decide the matter. If a suitable person cannot be agreed upon, DAS will ask the president of a relevant national law society to choose a suitably qualified person. |
| What happens if my legal costs end up going over my limit of indemnity? |
The indemnity limit shown in your policy schedule is the maximum that would be paid out in the event of a claim. If your case is likely to exceed the limit you will be informed, but you will be responsible for any costs over the indemnity limit. |
| What happens if my own solicitor begins work on my dispute, before I notify DAS? |
If you think you may have a claim do not ask a solicitor for advice unless DAS has given permission to do so. If you do, we will not pay the costs involved. There is also a chance that your claim could be prejudiced by not taking and following our advice from the moment you became aware of the dispute. |
| What is meant by ‘reasonable prospects’? |
It is not beneficial for anyone concerned to support a claim which has little chance of success. In civil claims the appointed solicitor must agree that there is a better than 50% chance of the claim being successful in order for us to proceed. Reasonable prospects must always exist throughout the duration of a civil claim. |
| Will a legal expenses policy cover ‘any’ legal dispute? |
Our policies cover you in respect of a wide range of insured perils. The cover is not unlimited and the policy wording will list the incidents which you are insured against. |
Click on any of the following questions for more information
| What is Legal Expenses Insurance? |
DAS helps individuals and companies alike meet the cost of taking legal action or defending their rights if they have a dispute with another party by providing insurance designed to meet these costs.
|
|
•
|
Motor - we will endeavour to recover uninsured losses, such as compensation for injuries from the person who caused the accident.
|
|
|
•
|
Personal - we can protect against a variety of potential disputes, including employment problems, bodily injury and contract disputes.
|
|
|
•
|
Commercial - we can pursue or defend legal rights in a wide range of business related disputes, including employment disputes and awards, legal defence, property and tax protection. We also provide an online employment manual which gives up-to-date advice on the main areas of Irish employment law.
|
|
| If I have a legal problem before my policy starts, will this still be covered? |
Matters which you are aware of before the start of your policy are excluded. |
If I speak to the legal advice helpline, does this automatically trigger a claim?
|
If you call the legal advice helpline to discuss a problem that might lead to a claim, it is important to note that, due to the confidential nature of the service, a telephone call to the legal advice helpline does not register a possible claim under the policy and you will still need to contact us for a claim form. |
| My policy suggests that some disputes may be ‘negotiated for’ rather than simply pursued or defended in court. Why is this? |
It is often more beneficial for both parties to try and reach a settlement rather than go to court which is both stressful and time consuming. The majority of legal disputes are in fact settled by negotiation. We always provide the most appropriate solution to your legal dispute which may well entail entering into negotiation as the fastest and most effective way of resolving a dispute. |
| What do ‘legal costs’ include? |
This will include things like the solicitors’ or barristers’ fees and charges for disbursements, not to mention the opponents costs should you lose and be liable to pay them. |
What happens if I am not happy with the way the appointed solicitor is dealing with my claim?
|
If there is a disagreement about the handling of a claim another suitably qualified person can be agreed upon to decide the matter. If a suitable person cannot be agreed upon, DAS will ask the president of a relevant national law society to choose a suitably qualified person. |
| What happens if my legal costs end up going over my limit of indemnity? |
The indemnity limit shown in your policy schedule is the maximum that would be paid out in the event of a claim. If your case is likely to exceed the limit you will be informed, but you will be responsible for any costs over the indemnity limit. |
| What happens if my own solicitor begins work on my dispute, before I notify DAS? |
If you think you may have a claim do not ask a solicitor for advice unless DAS has given permission to do so. If you do, we will not pay the costs involved. There is also a chance that your claim could be prejudiced by not taking and following our advice from the moment you became aware of the dispute. |
| What is meant by ‘reasonable prospects’? |
It is not beneficial for anyone concerned to support a claim which has little chance of success. In civil claims the appointed solicitor must agree that there is a better than 50% chance of the claim being successful in order for us to proceed. Reasonable prospects must always exist throughout the duration of a civil claim. |
| Will a legal expenses policy cover ‘any’ legal dispute? |
Our policies cover you in respect of a wide range of insured perils. The cover is not unlimited and the policy wording will list the incidents which you are insured against. |
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| Employment disputes – |
• An employee resigned her position and then made a claim of sexual discrimination against her former employer. The employer's legal expenses insurers appointed a solicitor to represent them at the Employment Tribunal. Despite their successful defence, they incurred legal costs of €4,500 which could not be recovered. The costs were paid by the legal expenses insurer.
• Our insured faced an unfair dismissal claim from an ex-employee, who had been employed as a delivery and sales person. Our policyholder became aware that the takings received from the shop that the employee delivered to and the van round he carried out, did not reflect the value of goods which regularly left the bakery in the employee’s van. He was provided with the opportunity to explain this; he then appealed against his dismissal and took his case to the Employment Tribunal. The police were informed of the claims against him and upon investigation the employee confessed that he had taken his employers goods and had sold them on. Following this the case was withdrawn from the Tribunal.
• Following the dismissal of one of their employees our Policyholder received notice that he had applied to the Employment Appeals Tribunal alleging he had not received his full entitlement of holiday pay. Our Policyholder wished to dispute this and so contacted DAS who appointed Solicitors to act on their behalf. During the course of the appointed Solicitors investigations our Policyholders were able to supply evidence that indicated the ex-employee had received his full entitlement of holiday pay. Following this the DAS appointed Solicitors advised the ex-employee that if he pursed his claim they would seek a costs order against him on the grounds that evidence showed it to be “vexatious and/or frivolous”. The ex-employee withdrew his claim shortly before it was due to be heard at the Employment Tribunal.
DAS paid the legal costs incurred in bringing this matter to a satisfactory conclusion.
• As a result of restructuring within the Policyholder’s Company, a number of redundancies were made. However, the employee concerned in this dispute was not made redundant but offered a new position involving additional responsibilities. The new position was offered on an informal basis and although initially accepted, the employee subsequently changed her mind. Unfortunately by this time the employee’s current position had been offered to, and accepted by, another employee. Our Policyholder had no other position for this employee and so her employment was terminated with one month’s notice. The ex-employee brought a claim for unfair dismissal against our Policyholder and the case proceeded to a full Employment Appeal Tribunal hearing where it was held that the former employee had been unfairly dismissed.
Although the former employee had changed her mind about accepting the new job, the Employment Appeals Tribunal did not consider that it was reasonable to dismiss her as a result of this change of mind. However, it was also considered that she had contributed to the dismissal to the extent of 60% by her change of mind.
Compensation of €4,100 and legal costs of €2,955 were paid by DAS.
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| Tax investigations- |
• An incorrect return discovered by the Revenue Commissioner in a policyholder's accounts triggered a Full Audit. Accountants appointed by the legal expenses insurer made technical changes to the accounts and showed where some areas of additional taxes needed paying. No further interest or penalties were charged. The accountant's fees of over €4,000 were paid by their insurance.
• Our Policyholder, a builder, received a notification from the Revenue Commissioners regarding a full audit of his books of Account for the years 2000/2001. DAS instructed their Agents to speak to the policyholder’s Accountant. Copies of the relevant documentation were furnished by the Accountant to DAS. Fees and a schedule of works were agreed, prior to commencement of the Audit, Once the Audit commenced, the Revenue decided to extend the Audit to include the books of account for the years 1998/1999. The Audit in total lasted two and a half weeks. DAS’s Agents had been in constant discussion with the policyholder’s Accountant, throughout the Audit and reserves and estimated costs had to be reviewed a number of times. The amount of Accountant’s fees paid by DAS came to €6,500. |
| Legal defence – |
• When a policyholder failed to report an accident to the Health & Safety inspector, they faced prosecution. Solicitors appointed by DAS to represent them advised admitting their guilt, but pleaded mitigation on their behalf. The policyholder was let off with a caution and their insurer paid the solicitor's fees.
• Our insured ran a gift shop and had recently carried out some local advertising. They were contacted by the Office of the Director of Consumer Affairs, who had received a complaint about their publicity material, stating it was both incorrect and misleading. Our client was charged with infringing the Consumer Information Act. We took the case forward on their behalf and successfully defended it. This ensured that the Advertising Standards Authorities would take no further action. Our insured suffered no detriment to his business and had no legal costs to pay. The €1,517 costs attached were met by DAS on his behalf.
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| Property Protection- |
• Our Policyholder contacted DAS requesting assistance under his DAS Legal Expenses Policy in relation to a possible claim arising out of damage done to his property during the renovation of a neighbouring building. During the course of construction work to his neighbour’s roof, water penetrated our policyholder’s property resulting in a claim for:-
1. Damage to our Policyholder’s property and costs of remedial work, plus,
2. Loss of revenue; our Policyholder had been intending to let his property as flats, but was now unable to do so because refurbishment work had had to be postponed following the water damage.
3. Expert evidence was required in order to substantiate our Policyholder’s case, and DAS instructed an architect to provide an expert report
The claim was lodged in the Circuit Court and Counsel was instructed. Following lengthy discussions with the Defendant’s Solicitors for settlement, an initial offer of €7,500 was rejected and a further one of €17,000 was made. However, further negotiations with the Defendant’s representatives resulted in an offer of €25,000 being made, which was accepted on behalf of our policyholder.
Legal costs incurred in handling this lengthy and complex claim on behalf of our Policyholder were in the region of €6,000.
• Our Policyholder is a turkey farmer whose 9,500 birds were being threatened by diseased chickens kept on neighbouring land. If the turkeys caught the disease, our Policyholder would be forced to destroy them, losing the €250,000 the birds were valued at and also suffer serious damage in respect of loss of contracts and good will.
DAS appointed Solicitors who, seeing the urgency of the matter, applied to the Court for an injunction. This was served on our Policyholder’s neighbour on a Friday with the date for the Hearing set for the following Wednesday. However, 2 days before the Court Hearing, the matter was settled with our Policyholder’s neighbour agreeing to remove the chickens on receipt of a payment of €1,000 immediately, and annual amount of €500 up until the year 2001.
Our Policyholder was very pleased with the speed and efficiency with which this matter was dealt with, which had safeguarded his valuable turkey breeding stock.
DAS paid the Solicitors fees in handling this case which amounted to €5,255.
• A claim was made by our Policyholder under his Legal Policy in relation to squatters camped on his land contrary to Section 24 Housing (Miscellaneous Provisions) Act 2002.
Solicitors were appointed to act on behalf of our policyholder in order to instigate the necessary “Ejectment Proceedings”. A Hearing took place following the issue of proceedings and an order for the immediate eviction of the squatters was given, and this was placed in the hands of the County Sheriff, resulting in the squatters being moved off the Policyholder’s land. The legal costs incurred in successfully evicting the squatters were in the region of €4,700.
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| Bodily Injury Cover- |
• Our policyholder’s employee tripped and fell badly on a third party premises, sustaining a serious fracture to his ankle. The policyholder contacted DAS to make a claim of negligence against the third party. Medical reports obtained from the orthopaedic surgeon concluded that the employee would never again have full use of the ankle and would always experience some degree of pain. The third party refused to accept liability and the case went to court. The case was won and a €30,000 compensation payment was ordered. Legal costs of €5,000 and outlays were awarded. |
| Motor Prosecution Defence- |
• Our policyholder was travelling on a main road and was overtaking a tractor and trailer. During this manoeuvre the tractor swerved to the right, forcing our insured to swerve into a parked car. The guards were called, and in his statement the driver of the tractor said that his indicator was on, and had been on for approximately 50M prior to turning. As a result, our policyholder was prosecuted for careless driving under Section 52 of the Road Traffic Act 1961.
DAS appointed solicitors to investigate and it transpired that, although the indicators on the tractor were working, those on the trailer were not. This matter was argued in court and the judge felt that there was not enough evidence to convict and the prosecution failed.
DAS paid costs of nearly €1,000 in defending this claim.
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| Employment disputes – |
• An employee resigned her position and then made a claim of sexual discrimination against her former employer. The employer's legal expenses insurers appointed a solicitor to represent them at the Employment Tribunal. Despite their successful defence, they incurred legal costs of €4,500 which could not be recovered. The costs were paid by the legal expenses insurer.
• Our insured faced an unfair dismissal claim from an ex-employee, who had been employed as a delivery and sales person. Our policyholder became aware that the takings received from the shop that the employee delivered to and the van round he carried out, did not reflect the value of goods which regularly left the bakery in the employee’s van. He was provided with the opportunity to explain this; he then appealed against his dismissal and took his case to the Employment Tribunal. The police were informed of the claims against him and upon investigation the employee confessed that he had taken his employers goods and had sold them on. Following this the case was withdrawn from the Tribunal.
• Following the dismissal of one of their employees our Policyholder received notice that he had applied to the Employment Appeals Tribunal alleging he had not received his full entitlement of holiday pay. Our Policyholder wished to dispute this and so contacted DAS who appointed Solicitors to act on their behalf. During the course of the appointed Solicitors investigations our Policyholders were able to supply evidence that indicated the ex-employee had received his full entitlement of holiday pay. Following this the DAS appointed Solicitors advised the ex-employee that if he pursed his claim they would seek a costs order against him on the grounds that evidence showed it to be “vexatious and/or frivolous”. The ex-employee withdrew his claim shortly before it was due to be heard at the Employment Tribunal.
DAS paid the legal costs incurred in bringing this matter to a satisfactory conclusion.
• As a result of restructuring within the Policyholder’s Company, a number of redundancies were made. However, the employee concerned in this dispute was not made redundant but offered a new position involving additional responsibilities. The new position was offered on an informal basis and although initially accepted, the employee subsequently changed her mind. Unfortunately by this time the employee’s current position had been offered to, and accepted by, another employee. Our Policyholder had no other position for this employee and so her employment was terminated with one month’s notice. The ex-employee brought a claim for unfair dismissal against our Policyholder and the case proceeded to a full Employment Appeal Tribunal hearing where it was held that the former employee had been unfairly dismissed.
Although the former employee had changed her mind about accepting the new job, the Employment Appeals Tribunal did not consider that it was reasonable to dismiss her as a result of this change of mind. However, it was also considered that she had contributed to the dismissal to the extent of 60% by her change of mind.
Compensation of €4,100 and legal costs of €2,955 were paid by DAS.
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| Tax investigations- |
• An incorrect return discovered by the Revenue Commissioner in a policyholder's accounts triggered a Full Audit. Accountants appointed by the legal expenses insurer made technical changes to the accounts and showed where some areas of additional taxes needed paying. No further interest or penalties were charged. The accountant's fees of over €4,000 were paid by their insurance.
• Our Policyholder, a builder, received a notification from the Revenue Commissioners regarding a full audit of his books of Account for the years 2000/2001. DAS instructed their Agents to speak to the policyholder’s Accountant. Copies of the relevant documentation were furnished by the Accountant to DAS. Fees and a schedule of works were agreed, prior to commencement of the Audit, Once the Audit commenced, the Revenue decided to extend the Audit to include the books of account for the years 1998/1999. The Audit in total lasted two and a half weeks. DAS’s Agents had been in constant discussion with the policyholder’s Accountant, throughout the Audit and reserves and estimated costs had to be reviewed a number of times. The amount of Accountant’s fees paid by DAS came to €6,500. |
| Legal defence – |
• When a policyholder failed to report an accident to the Health & Safety inspector, they faced prosecution. Solicitors appointed by DAS to represent them advised admitting their guilt, but pleaded mitigation on their behalf. The policyholder was let off with a caution and their insurer paid the solicitor's fees.
• Our insured ran a gift shop and had recently carried out some local advertising. They were contacted by the Office of the Director of Consumer Affairs, who had received a complaint about their publicity material, stating it was both incorrect and misleading. Our client was charged with infringing the Consumer Information Act. We took the case forward on their behalf and successfully defended it. This ensured that the Advertising Standards Authorities would take no further action. Our insured suffered no detriment to his business and had no legal costs to pay. The €1,517 costs attached were met by DAS on his behalf.
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| Property Protection- |
• Our Policyholder contacted DAS requesting assistance under his DAS Legal Expenses Policy in relation to a possible claim arising out of damage done to his property during the renovation of a neighbouring building. During the course of construction work to his neighbour’s roof, water penetrated our policyholder’s property resulting in a claim for:-
1. Damage to our Policyholder’s property and costs of remedial work, plus,
2. Loss of revenue; our Policyholder had been intending to let his property as flats, but was now unable to do so because refurbishment work had had to be postponed following the water damage.
3. Expert evidence was required in order to substantiate our Policyholder’s case, and DAS instructed an architect to provide an expert report
The claim was lodged in the Circuit Court and Counsel was instructed. Following lengthy discussions with the Defendant’s Solicitors for settlement, an initial offer of €7,500 was rejected and a further one of €17,000 was made. However, further negotiations with the Defendant’s representatives resulted in an offer of €25,000 being made, which was accepted on behalf of our policyholder.
Legal costs incurred in handling this lengthy and complex claim on behalf of our Policyholder were in the region of €6,000.
• Our Policyholder is a turkey farmer whose 9,500 birds were being threatened by diseased chickens kept on neighbouring land. If the turkeys caught the disease, our Policyholder would be forced to destroy them, losing the €250,000 the birds were valued at and also suffer serious damage in respect of loss of contracts and good will.
DAS appointed Solicitors who, seeing the urgency of the matter, applied to the Court for an injunction. This was served on our Policyholder’s neighbour on a Friday with the date for the Hearing set for the following Wednesday. However, 2 days before the Court Hearing, the matter was settled with our Policyholder’s neighbour agreeing to remove the chickens on receipt of a payment of €1,000 immediately, and annual amount of €500 up until the year 2001.
Our Policyholder was very pleased with the speed and efficiency with which this matter was dealt with, which had safeguarded his valuable turkey breeding stock.
DAS paid the Solicitors fees in handling this case which amounted to €5,255.
• A claim was made by our Policyholder under his Legal Policy in relation to squatters camped on his land contrary to Section 24 Housing (Miscellaneous Provisions) Act 2002.
Solicitors were appointed to act on behalf of our policyholder in order to instigate the necessary “Ejectment Proceedings”. A Hearing took place following the issue of proceedings and an order for the immediate eviction of the squatters was given, and this was placed in the hands of the County Sheriff, resulting in the squatters being moved off the Policyholder’s land. The legal costs incurred in successfully evicting the squatters were in the region of €4,700.
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| Bodily Injury Cover- |
• Our policyholder’s employee tripped and fell badly on a third party premises, sustaining a serious fracture to his ankle. The policyholder contacted DAS to make a claim of negligence against the third party. Medical reports obtained from the orthopaedic surgeon concluded that the employee would never again have full use of the ankle and would always experience some degree of pain. The third party refused to accept liability and the case went to court. The case was won and a €30,000 compensation payment was ordered. Legal costs of €5,000 and outlays were awarded. |
| Motor Prosecution Defence- |
• Our policyholder was travelling on a main road and was overtaking a tractor and trailer. During this manoeuvre the tractor swerved to the right, forcing our insured to swerve into a parked car. The guards were called, and in his statement the driver of the tractor said that his indicator was on, and had been on for approximately 50M prior to turning. As a result, our policyholder was prosecuted for careless driving under Section 52 of the Road Traffic Act 1961.
DAS appointed solicitors to investigate and it transpired that, although the indicators on the tractor were working, those on the trailer were not. This matter was argued in court and the judge felt that there was not enough evidence to convict and the prosecution failed.
DAS paid costs of nearly €1,000 in defending this claim.
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