Litigation and Insurance

6. Exclusions

Most legal expenses policies impose conditions and exclusions, which may include some of the following:

6.1 No claims within the first 30 days of the policy, or 180 days if the case covers an employee who was already subject to disciplinary proceedings when the policy was taken out.

6.2 A requirement to call the legal helpline before pursuing any action that could be subject to a claim.

• This is particularly important before dismissing employees.

6.3 A policy excess for disputes covering the sale or purchase of goods or services.

• You will not be covered for claims below the excess amount.

6.4 No cover in certain situations.

• Where there are no reasonable prospects of success. For example, pursuing debts that are not in dispute but simply a little overdue.
• Where the action does not relate to normal business activities.
• For fines or other penalties you are ordered to pay by a criminal court.
• For any prosecution alleging dishonesty or intentional violence.
• For motoring prosecutions.
• For the defence of professional negligence claims.