Legal Protection Insurance

Legal protection insurance is an insurance policy that covers the costs of asserting legal interests. This includes, in particular, attorney fees, court fees, expert costs, and the opposing party’s costs if they must be reimbursed. The insurance coverage applies in the areas of life agreed in the contract, such as private life, profession, traffic, or housing. The aim of legal protection insurance is to ensure access to justice regardless of the individual’s financial situation.

Scope of Coverage

The scope of legal protection insurance is modular and regularly includes various areas. Private legal protection covers everyday conflicts, such as purchase agreements or claims for damages. Professional legal protection protects employees in disputes with their employer, for example, in the event of termination or outstanding salary claims. Traffic legal protection is particularly relevant in practice, as it applies after traffic accidents, disputes with insurance companies, or in the event of administrative penalties.

The criminal legal protection is of particular importance. It covers the defense in criminal proceedings, mostly in the case of negligence offenses. Many contracts also provide for extended coverage, so that proceedings for intentional offenses are covered at least until an acquittal or a dismissal. Finally, there is the housing and property legal protection, which covers rental and property conflicts.

Individual providers are expanding the offer to include areas such as family law, inheritance law, or administrative law. However, these modules are often subject to restrictions and are not included in every contract.

Obligations of the Policyholder

In order for the insurance to actually provide benefits, policyholders must observe certain obligations. The immediate notification of the insured event is particularly important. This is the only way the insurer can check in time whether coverage exists. Before commissioning a lawyer, a coverage confirmation must also be obtained. Without this confirmation, there is a risk that costs will not be reimbursed.

The policyholder is obliged to present the facts truthfully and completely and to submit all relevant documents. He must cooperate with the insurer in settlements or out-of-court solutions and must not cause unnecessary costs. Violations of these obligations, such as a late notification or false information, can lead to the insurer being exempt from providing benefits.

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Exclusions

The insurance cover has clear limits. Regularly excluded are intentionally caused cases as well as serious intentional criminal offenses. Disputes from areas such as tax law or corporate law are also often not covered, unless they are expressly insured. Procedures that were foreseeable before the conclusion of the contract are also not covered. Finally, the insurer can refuse to cover the costs if a procedure does not have a sufficient prospect of success or is obviously conducted maliciously.

Legal Protection Case Procedure

If an insured event occurs, it is first reported to the insurer. The latter then checks whether the coverage requirements are met. If the coverage is affirmed, the insurer issues a written confirmation. Only then should a lawyer be commissioned to represent the client, so that the assumption of costs is secured. During the ongoing proceedings, the insurance company covers the agreed costs and can also enable the financing of mediation if necessary.

If there is disagreement between the insurer and the policyholder about the prospects of success, the so-called tie-breaker procedure is available. In this case, an independent lawyer decides bindingly whether the case has a sufficient prospect of success.

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Waiting Periods and Deductibles

Many contracts provide for a waiting period, often three to six months. During this time, the insurance cover does not yet apply to new disputes. This prevents already known conflicts from being subsequently included in the insurance cover. In addition, many contracts provide for a deductible, which must be borne by the policyholder per case. Amounts between €150 and €300 are common.

Practical Significance

Legal protection insurance creates financial security in legal disputes. Without insurance, even minor amounts in dispute can lead to considerable costs that prevent those affected from accessing the legal system. With insurance cover, legitimate claims can be enforced and unjustified claims can be defended without the risk becoming unbearable. Especially in complex or lengthy proceedings, it becomes clear that insurance is an essential instrument for safeguarding rights.

Your Benefits with Legal Assistance

Our law firm provides comprehensive support in all questions relating to legal protection insurance. We check whether your case is covered by the insurance cover, take over the communication with the insurer and ensure that the coverage confirmation is obtained in good time. In addition, we represent you in civil and criminal proceedings and ensure that your claims are not jeopardized by formal errors or missed deadlines.

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Frequently Asked Questions – FAQ