Legal protection insurance is a type insurance protection that covers a possible legal incident occurring where this policy would cover expenses that occur due to the legal incident.
Originating in 1911 due to an auto racing accident at Le Mans, France where some of the spectators were killed, triggered a gathering of individuals to form a society to provide protection against the expense of the legal aspects of such incidents.
The idea being that by having such coverage, an individual will better be able to secure legal representation, is largely true. When an individual first meets with a lawyer, one of the topics of discussion is fees, and how they are to be paid. If the attorney learns that the person has legal protection insurance, then that hurdle will have been discussed and will not be a matter of contention.
Most typically, these types of policies are indemnity contracts that cover various legal items for a flat amount. The entire cost of the service may or may not be covered, but it can be safely assumed that a large portion of the cost will be covered. In the end, such policies allow for legal charges to be covered at a very nice discount over the course of any legal action.
Two types of legal coverage have evolved over the years, “before the event” coverage, and “after the event” coverage. Before the event coverage takes care of a range of legal events that are usual in their appearance in a typical legal scenario. They may or may not appear in the future.
An after the event coverage will take care of events that have occurred in the past. This is currently a very rare type of coverage, and only appears in the United Kingdom as being sold.
The concept of having some sort of coverage that will provide for legal expenses is a sound one that has been proven over time to be a viable and sensible method of providing for one’s legal expenses, should such expenses be necessary.
The coverage is not usually discretionary in that if the terminology of the policy covers the events that actually occur, then the policy will pay such items as they language in the policy decrees. These items can make a fairly long list from business disputes, employment disputes, divorce items, criminal issues, and the list goes on and on.
Coverage on these policies are intended to provide the necessary funds to pay legal fees as they occur. Usually, the legal entity the barrister or lawyer will simply bill the insurance company, and any excess charges are then billed to the policyholder.
This is a very simple and straightforward method of completing the claims on the policy either as they occur or after the fact. Having such legal protection is a great source of peace of mind, particularly for people who might be exposed to potential legal litigation from time to time. One never knows when one might be sued, and this will take care of the bulk of the costs if legal procedures occur.