Legal expenses insurance
This guide is designed to give you all the information you need about legal expenses insurance. If you have been involved in an accident of some kind, you have been dismissed from your employment unfairly, or for there are other legal considerations, it is important to know what your rights and obligations are, and what insurance cover you have to help.
Table of contents
What is legal assistance insurance?
Legal assistance insurance is an insurance policy that helps to cover the cost of professional legal advice across a whole host of events and situations. An insurer will often work alongside a legal assistance provider that they can then call upon when needed. It is also possible to obtain external legal advice, but this is often subject to a number of restrictions or unfavourable conditions. Proceedings before the court or before a dispute resolution body may be initiated in consultation with the insurer. Then the insurer will reimburse (part of) the costs.
Compare legal expenses insurance
A legal insurance policy ensures that the policyholder has legal advice or assistance in the event of a dispute, with options such as family legal expenses cover, accident insurance legal expenses, and car insurance legal expenses. The fine print always plays an important role in legal expenses insurance. It outlines the coverage in terms of possibilities and limitations. There can be major differences with the choice of legal professional available, the threshold amounts and premiums. It is important to compare legal expenses insurance to find the policy that suits you best. Below are some of the factors you must consider.
Who is insured?
This will change depending on the specific cover. For example, with a family policy, all family members living at home are covered by the legal expenses insurance. This is not always the case with some legal assistance cover. Always check the detail of the policy to see who is included and if any particular people are excluded, such as domestic staff or car passengers.
Waiting time
Foreseeable disputes are always excluded to stop people covering themselves for legal proceedings they fear are coming. Waiting periods are almost always included in policy conditions as a result. A policyholder cannot claim any damage for the first three to six months for example.
Coverage of the legal expenses insurance
Not everything is covered by legal assistance insurance, so always be sure to check if what you want to be covered for is included in the policy you are looking at. For example, there is often no coverage in labour disputes or divorce proceedings, but these can be added as additional cover. There are also exclusions regarding events involving non-EU parties.
Free choice of lawyer
The European Court of Justice underlined the importance of a free choice of lawyer, so this is always now part of a policy. It can be difficult to do this in practice though, with insurers using their favoured legal professionals in most cases. They might include a higher deductible or apply for maximum reimbursement for external costs.
Threshold amounts
Insurers will only provide legal assistance above a certain threshold. This threshold amount will vary from insurer to insurer and policy to policy, and is usually between €100 and €250. You will find however, that more insurers are no longer applying a threshold amount - such as Nationale Nederlanden and Verzekeruzelf.nl.
Lower compensation
The cover available will drop to just €3.000 with some insurers where there is not a strict need to employ a lawyer to deal with proceedings. Restrictions are also included in some disputes, as can be seen with employment law.
Coverage area
Depending on the specific area the legal assistance insurance is covering, there may be limited coverage area geographically. These can sometimes be quite strict, as with disputes over employment contracts being restricted to the Benelux. European coverage does apply in some areas, such as traffic cases, but this will differ between insurers.
Own risk
A deductible may apply as with other types of insurance. Part of the legal costs must then be paid by the policyholder. Most insurers do not apply a deductible as standard, apart from with a free choice of lawyer. The deductible may be increased to lower the premium in some cases.
Legal assistance provider
Even if you do change to another legal assistance insurer this does not automatically mean that you’ll change legal assistance provider. Legal expenses insurers rarely provide legal assistance themselves and conclude agreements with parties such as ARAG for this purpose. Always check the provider before changing insurer.
Costs of legal expenses insurance
The cost of legal expenses insurance depends on many factors. Coverage plays an important role in this, as does family composition. That is why we recommend not only taking the price into account when comparing legal expenses insurance. Other factors that influence the cost of legal expenses insurance are shown below.
Coverage of legal expenses insurance
The coverage of the policy is one of the key determining factors in the cost. Many insurers have a modular structure, where you can choose which situations you want to be covered for, and which you want to exclude. This can make the policy coverage specific to you, and cost a fair amount. Some additional cover includes:
Traffic module: conflicts in traffic as a driver, pedestrian, cyclist, etc.
Consumer module: consumer product conflicts
Housing module: conflicts with a contractor, with neighbours, with the landlord etc.
Income module: conflicts with an employer, with the UWV, etc.
Assets module: conflicts with the tax authorities, about the transfer of shares, etc.
Divorce mediation module: compensation for divorce mediators and sometimes also when a cohabitation contract is terminated
Number of Insured persons and family composition
The higher the number of people covered by the legal expenses insurance, the more expensive the insurance becomes. As a result, people with a large family will pay more for a family policy than someone who only lives with a son or daughter. A policy for a single person is even cheaper.
Conditions and Exclusions
Insurers often impose all kinds of conditions and exclusions, as a result of which they have to pay out claims less often. In general, insurers with more favourable conditions are also more expensive. Things to watch out for include:
Preventing a Franchise
Specific exclusions
Waiting periods
Limited coverage areas
In addition, the external costs incurred by the legal assistance provider, such as the costs for an external lawyer or court costs, are often insured to a limited extent. With a low premium, the insured amount is often a lot lower.
Own risk
With a deductible, an insured person must pay part of the legal assistance costs themselves, but therefore will have a lower premium. With most insurers there is no deductible as standard, but with a number of insurers this can be voluntarily increased in exchange for a discount.
Commercial discounts and benefits
Some insurers grant commercial discounts, for example to loyal customers or to policyholders who take out different insurance policies with them. Those who immediately pay the full annual premium may also receive such a discount. The exact conditions and discounts differ from insurer to insurer and are not always the same.
Switching legal assistance insurance
By switching legal expenses insurance, substantial savings are sometimes possible. However, this does not mean that the insured person automatically ends up with a different legal assistance provider. Always pay attention to waiting times and switch at the best time, at the earliest 12 months after taking out the insurance.
Why switch to a different legal expenses insurance?
There are many reasons why a person might want to switch legal expenses insurer. It might be to try and save money on the premium, or because they are unhappy with the legal assistance provided. At other times a person might be obliged to switch after claiming too often under the current policy. There are different legal assistance insurance companies.
When to switch to another legal expenses insurance?
It is usually not possible to switch in the first 12 months of a contract, but there are some exceptions to this, for example when an insurer increases the premium to the detriment of the policyholder. After the expiry of this first period of 12 months, it is possible to switch to another legal expenses insurance, with a notice period of one month.
Points to consider when switching legal expenses insurance
Always consider the following points when switching to a different legal expenses insurer:
Ask about waiting time - these are usually between three to six months before you can claim
A waiting time might apply to even additional modules, and not just a brand new policy
Always speak to your new insurer if you have an ongoing legal dispute
This is how switching to another legal expenses insurance works
It is a simple process to switch legal expenses insurance. You must first cancel your old insurance, and even though there are no formal requirements we would always advise that you send a registered letter to prevent potential problems and delays. Your new insurer will most likely offer to help with the switch.
9 Ways to save on legal expenses insurance
You might save money by switching to a different legal expenses insurer, but there are other ways you can do so. Sometimes, these can be just little changes to your policy and coverage. Below are some of the things that you can do to make savings with your insurance.
1. Avoid unnecessary coverage
Some insurers provide you with the chance to choose different sections that act as additional coverage. This adds cost of course, and it is down to you to decide what extra coverage you need, cutting the cost accordingly. For example a pensioner doesn’t need coverage for labour disputes. Some insurers don’t offer flexibility, so always check.
2. Report changes to the insurer
Always report any changes to your situation, especially if your family situation changes. If your child is now an adult and lives away from the home, this could lower your premium. A single person will pay less than a married couple, and those with children will pay more for a policy. This applies to all insurance policies, not just legal expenses insurance.
3. Check additional legal expenses insurance
Check if there is overlap between additional legal assistance you can add to your policy and the general legal expenses insurance. It could be that you do not require the more extensive coverage and this could save you money. Always compare such additional legal assistance insurance policies and any additional modules carefully, sometimes they are better left out.
4. Claim premium discounts
Sometimes you can find premium savings through package discounts. This is where you take out multiple insurance policies with one insurer. So alongside your legal expenses insurance you might also take out home contents insurance and gain a discount. Be careful, as it isn’t always the case that you save money this way, it may be cheaper separately.
5. Increase own contribution
With some insurers it is possible to provide a voluntary personal contribution. In the event of a legal conflict, the insured must then pay a certain amount. In return, the policyholder does enjoy a discount on their premium. This may be limited depending on your insurer.
6. Pay annually instead of monthly
Another way to save on legal expenses insurance is to pay annually instead of monthly. Many insurers offer a discount if you choose to pay the annual premium for the legal expenses insurance in one go. This can make a significant difference in the total cost of the insurance.
7. Compare legal expenses insurance
The best way to ensure you have the most cost-effective legal expenses insurance policy for your specific situation is to keep comparing between different insurers and policies. Conditions and exclusions, package discounts, and other saving options differ greatly between insurers.
8. Be careful with all-in-one packages
To return to package discounts for a moment, always be careful that the coverage you receive is up to the standard that you expect. Even though you might save money by bundling various policies with one insurer, the legal expenses insurance might not be up to the same quality you have with your current insurer, and the premiums could be higher.
9. Legal expenses insurers in the Netherlands
There are many different insurers in the Netherlands, but in terms of legal assistance providers there are only a handful that work with insurance companies. You might find that even when you change your insurer, the legal assistance is provided by the same company. Always check on price, coverage, discounts, exclusions and other factors before committing.
Additional information about legal expenses insurance
You never take out legal expenses insurance to cover all types of legal conflicts. This is even the case for general legal expenses insurance. Some policies will only offer legal assistance in traffic disputes for instance, whilst others are for labour disputes.
Is legal expenses insurance compulsory?
Legal assistance insurance is not mandatory in the Netherlands, but it is useful to have. This protects you against expensive bills from a lawyer, if you need legal help. Historically, the Dutch received assistance from the state or their workers union, but this safety net has almost entirely disappeared. Legal costs can be high, making legal assistance insurance welcome.
How much does a lawyer cost?
The average cost of a lawyer is usually between €200 and €300 per hour. This is for a lawyer in a relatively small office, and without specialism. A specialist lawyer can cost as much as €400 per hour, and this is before you include office costs and additional costs to run a case succesfully.
"I will never get into legal trouble"
Most Dutch people think they will never get into legal trouble. Any person can get into trouble and require legal assistance. If you don’t agree that you are liable for an incident and you don’t want to settle, the legal costs can quickly spiral. You might think paying for this insurance is a waste of money, but if you do end up needing help it will save you money.
Waiting time for legal expenses insurance
There is always a waiting time after signing up for legal expenses insurance before you can claim. This is usually between three to six months, and is designed to prevent people from taking out insurance when they expect a conflict in the near future. In almost all cases there are exceptions where the waiting time can be up to 36 months, so always check.
The conditions
When taking out an insurance policy, take a good look at the policy conditions. With legal assistance insurance, it often happens that the insurer sets up a so-called 'franchise'. This means that there must be a minimum amount of damage. This prevents people from abusing the insurance and knocking on the insurer's door for every little thing.
The franchise is therefore a kind of threshold amount. Most insurers work with a minimum claim of €200.
Own risk
You may have to pay a deductible when registering a claim, and this is comparable with a deductible you would pay to a health insurer. You must also pay a personal contribution for legal support. Legal expenses insurance is offered by many different insurers. As a result, they can differ greatly in price and conditions.
Restrictions on legal assistance insurance
As with other insurance policies, legal assistance insurance often has a number of limitations. Each insurer decides which exclusions or restrictions it imposes. Things to watch out for include:
The nature of the conflicts covered and which conflicts are explicitly excluded
The form of the cover (e.g. only mediation or also court proceedings?)
The maximum sum insured for specific conflicts
Who in the family is co-insured (e.g. children living away from home for study?)
Waiting periods
Coverage area
Restrictions on the free choice of lawyer
Disagreement with your own insurer
The policy conditions always state how a conflict should be handled. A lot of power is often placed in the hands of the insurer. For example, the insurer must grant permission to call in a specialist or to admit guilt. Sometimes the insured does not agree with his insurer and a conflict can arise. In principle, the legal assistance insurance will never cover conflicts with your own insurer.
However, there are possibilities to oppose the decisions of the insurer yourself. The appeal procedure is always indicated in the policy conditions. In general, it is the case that an independent expert is called in for this. For example, another, independent lawyer can judge whether the insurer was right in his assessment. Does the other lawyer decide that litigation is still appropriate? Then it is often permitted to have the further procedure conducted by this lawyer.
Choose your own modules for the right coverage
Consumer law
Consumer law contains a wide number of rules that have been developed with the aim of protecting consumers. Without consumer law, consumers would be in a very weak position in their relationship with companies. To ensure a single market, a large part of consumer law applies throughout Europe. There are therefore many similarities with consumer law in other European countries, which is relevant for those who have shopped across borders, but there are also a number of important differences.
The most important consumer rights in the Netherlands are listed below:
Warranty on a sound product
Liability for products
Right of return
Employment support
Under a work module, labour matters or employment support is offered together with the income module. It includes various conflicts regarding employment contracts, wage payments, injury and damage during work, penalty clauses, and more.
Overview of employment law in the Netherlands →
Housing problems
When buying a house or land, many conflicts can arise. Coverage to support such issues include all kinds of conflicts related to the home, including rent disputes, conflicts with neighbours, disputes over failed renovations and property separation problems.
Housing problems and their solutions →
Student conflicts
Most legal expenses insurance also covers children who live away from home and study. This can be important, as students often suffer legal conflicts such as rental problems or disagreements with the educational institution they attend.
Legal problems as a student →
Immigration law
Immigration law is often excluded from legal expenses insurance. This is the case for everything related to immigration law, asylum and migration. InShared for example, specifically exclude immigration law. Immigration law in the Netherlands is traditionally divided into regular immigration law and asylum law.
Traffic legal assistance
Traffic' cover insures you against all conflicts that arise in traffic. For example, if you do not agree with the claims handling after a traffic accident. This can be a useful addition to your car insurance or motorcycle insurance.
Car insurance →Motorcycle insurance →
Business law
As an entrepreneur you have to comply with various things. Issues involved in doing business include the liability of a company, tenancy law when renting a building and trade unions. Such matters fall under corporate law. In contrast to private legal expenses insurance, where standard clauses are often used, business legal expenses insurance is always tailor-made.
Education law
Education law regulates the legal position of students, teachers and educational institutions. Various legal disputes can arise within education, such as the admission of students, the taking of exams or study advice. In these cases, the involvement of a lawyer may be necessary and legal expenses insurance can help with this.
Family legal aid
In addition to personal cover, it is possible to immediately place the entire family under the legal expenses insurance. This is cheaper than insuring everyone individually.
Social insurance or income
Social insurance covers all conflicts with social insurance or social provisions, such as conflicts regarding child benefit. This is increasingly being placed under a broader “income coverage”. This also includes, for example conflicts over student finance, wages, dismissal, pension, disability and so on.
Contract law
Contract law cannot be insured with a single module, but is available under various other modules. This concerns, for example, the rental agreement (housing module), employment contracts (income module) and purchase agreements (consumer module).
Inheritance law
Inheritance law is not always covered as standard by a general legal assistance insurance policy. Often it is under other modules. Sometimes this comes under a ‘Persons and Family Law’ module, and covers inheritance conflicts, mediation, and court proceedings.
Person and family law
This module covers the legal costs incurred in the family, for example in the event of a divorce or inheritance (sometimes they are offered via a separate module), but also, for example, in the case of adoption or guardianship. The policy conditions always state what is or is not covered. Conflicts about cohabitation, for example, are often excluded.
Divorce proceedings
The legal assistance insurer does not reimburse legal assistance in the event of a divorce, but there is often a reimbursement for mediation in the event of a divorce. Additional conditions are often attached to this. For example, there is often a waiting period of 36 months.
Divorce agreement
A divorce is an emotional and far-reaching event in which many things have to be arranged, including drawing up a divorce agreement. This document records all agreements that you and your (former) partner have made about the division of your assets, any alimony, the living situation and any other important matters. It is important to draw up a divorce agreement properly, so that no legal discussions arise later.
Maintenance obligation
In the event of a divorce, legal disputes may arise about the obligation to pay alimony. The maintenance obligation means that one partner contributes financially to the costs of the other partner, for example because the latter has a lower income or takes care of the children. If there is a disagreement about alimony, legal expenses insurance can offer a solution. For example, legal assistance can be provided in determining or changing the alimony obligation. This can take away a lot of stress and uncertainty during an emotionally difficult period.
Tax law and property law
Tax law cover is often offered together with property law cover. Property law insurance covers all kinds of conflicts related to assets, for example a conflict with the sale of shares or a conflict with the asset manager. Conflicts regarding an imposed tax assessment fall under the tax law cover. This module is often quite expensive and not necessary for many people.
Administrative law
This includes all kinds of disputes with governments. An example of this is not obtaining a permit. Such administrative law disputes are often covered by various insurance policies, such as property law cover or consumer and housing cover. In addition, there are often a number of exclusions.
Construction law
Such cover is often placed under different modules. Construction disputes can therefore be linked to various legal branches. For example, there may be a problem with the permit, with the neighbours or accidents may occur on the site. To be really sure, it is therefore better to opt for a specific legal expenses insurance. DAS and Aon, among others, have developed legal expenses insurance in collaboration with Bouwend Nederland Advies.
Legal aid or legal assistance
There are two main options for legal expenses insurance. The least extensive form is where your insurer provides legal support or advice on the next steps you should take with a case. With legal assistance insurance, this will go further, taking the steps that have been advised (such as settling or going to court) and covering the costs.
General points of interest
In addition, always check in which countries the cover applies, whether there are maximum reimbursements for external lawyers' fees, for example, whether a minimum claim amount applies, whether there is an excess and under what conditions the free choice of lawyer is possible or not.
Step-by-step plan in a consumer dispute
When there is a problem with the seller, the consumer can take action in several ways. In the first place, it is important that a solution is sought together, but legal action can also be taken if necessary.
Collect evidence
Contact the seller
Seller in default
Take legal action
It is important to have specialist legal assistance to help you with a matter such as this.
How extensive is the service provided by the legal expenses insurer?
Whether it concerns legal assistance or legal advice: always check to what extent the support covers. The main question here is which disputes are covered. They are not always equally relevant, but you should definitely think about disputes with the following parties or about the following matters:
Disputes with employees
Disputes with contractors
Disputes with the government
Disputes with the tax authorities
Disputes with suppliers or customers
Disputes about the lease of business space
Commercial vehicle disputes
Disputes about personal injury
Environmental damage disputes
The best working method is to check in advance which risks exist in the relevant sector, to make an inventory of these and then to have the legal expenses insurance adjusted accordingly.
Frequently asked questions about legal expenses insurance
Legal assistance insurance can help you with disputes and conflicts that require legal assistance. But how exactly does this insurance work and is it always necessary to take out one? In this FAQ we have listed a number of frequently asked questions about legal expenses insurance. Whether you already have a car or contents insurance and you are wondering whether legal assistance insurance is also necessary or you simply want to know more about this insurance, you will find answers to all your questions here.
Can I always take out legal expenses insurance?
In some cases it is not possible to take out legal expenses insurance. For example, if you have become embroiled in an ongoing conflict or if you can reasonably expect that there will be a conflict soon. This is what the insurance world calls 'insuring a burning house'. That is never done. It happens that, even if you are involved in a conflict, you can still take out legal assistance insurance. The conflict is then excluded from the cover. It is better to report the conflict than to conceal it, otherwise the insurer can still reject a case and the costs will be for its own account.
Can I start a lawsuit for any dispute with legal expenses insurance?
No, you cannot start a lawsuit for every disagreement and claim it from the insurance company. The insurer determines whether it is possible to start a lawsuit. The insurer mainly looks at the question of guilt: who is right? In case of a partial debt, the insurer is inclined to reject the case. If an insurer decides to take the matter to court, the insured is often free to choose a legal adviser or lawyer. Often a "franchise" applies. This is the threshold amount for which an insured must have a claim. The dispute will then only be reimbursed if the financial interest of the insured exceeds a certain amount.
Does the insurance work with a deductible?
Some insurers work with a deductible. Then the insured must pay a personal contribution for legal support. This occurs, for example, when external costs are incurred. External costs are the costs incurred when an insurance company has to outsource work. This can happen if a specialised lawyer from an external office has to work on the case.
What is a coverage area?
The coverage area is the area within which the insured person can claim legal expenses insurance. In many cases, only the Netherlands is covered, but there are also insurance policies which cover the Benelux, Europe or even beyond. Always check in advance which coverage area applies. A larger coverage area may be necessary.
Is legal expenses insurance necessary?
Most Dutch people assume that they will never become involved in a dispute that requires legal assistance. That is a fact: most Dutch people do not need legal assistance. Nevertheless, this insurance is worth considering. With legal expenses insurance, the insured has quick and easy access to legal advice. Moreover, the costs of handling a dispute can add up quickly. The costs for a lawyer vary from €70 per hour to hundreds of Euro per hour. Paying a premium is often cheaper than covering the cost of legal assistance alone should you require it.
What if a dispute is not covered?
If a dispute falls outside the cover, the legal assistance insurer will of course not provide assistance. The insured person is then free to engage a lawyer at their own expense or to appeal for subsidised legal assistance. Some insurers do offer the option of calling on the legal assistance providers from their network at a transparent and advantageous rate. Ask the insurer about the options and conditions.
What about co-insurance of family and partner?
Legal assistance insurance can be taken out personally or for the entire family. The premium is calculated on the basis of the family composition. Who is included in the family depends on the definition used by the insurer. This concerns at least the partner and the (step)children who live with the policyholder. Often this also concerns children who live away from home for their studies, but this is not always the case. In addition, there may also be conditions and exclusions, for example for children older than 28 or children who study outside the Netherlands. Finally, parents living at home may also fall under family cover. Ask the insurer about the exact options.
Am I entitled to subsidised legal aid?
Subsidised legal aid is for those who cannot afford legal assistance. That is why a number of conditions are imposed that mainly relate to assets and income. As of 2020, the taxable annual income in the reference year may not exceed 27,900 Euro for single persons and 39,400 Euro for those who are married, cohabiting, or form a parent family. The lower the income, the smaller the personal contribution. The amounts are adjusted annually, but the current limits can always be found on the website of the Legal Aid Board (www.rechtsbijstand.nl).
Can I request advice and support through organisations?
There are countless organisations that offer free legal advice and support, often for a number of specific target groups. The Juridisch Loket, a foundation financed by the Ministry of Justice and Security, is an example of this. It focuses on individuals and not on companies or foundations. Alternatives include, for example, Sociale Verhaal (an organisation that provides free legal advice for major social problems), the Rechtswinkels (comparable to the Juridisch Loket, but law students provide services here) and the Notaristelefoon (questions about inheritances, wills, donations, etc.).
What does the AFM (Financial Markets Authority) do?
The Netherlands Authority for the Financial Markets is the supervisor of the financial markets. It monitors the behaviour of various actors in the financial market, such as intermediaries, accountants, banks and so on. It can issue warnings and even impose fines or periodic penalty payments. If necessary, the AFM will file a report with the Public Prosecution Service.
What does the KiFiD (Financial Services Complaints Institute) do?
The Complaints Institute for Financial Services is an institute where Dutch consumers can submit complaints if they have problems with insurance, mortgages, loans, etc.
The Juridisch Loket: is it free?
The Juridisch Loket does indeed provide free legal advice, but only in a specific number of areas and if one meets a number of conditions with regard to income and assets. Moreover, it is also limited to advice and, if necessary, they will refer you to a lawyer, mediator or another body.
The Legal Aid Board (RVR): what exactly is that?
The Legal Aid Board was established to support people who cannot afford legal aid. The RVR ensures the optimal organisation of subsidised legal assistance and also carries out a number of special tasks, for example with regard to statutory debt restructuring.
Closing an ongoing case: how does that happen?
If the costs do not outweigh the benefits, the insurer can decide to close the case. The insurer will then itself compensate the damage of the insured because the legal costs will exceed the proceeds anyway. It makes no difference to the insured because they simply get what they are entitled to. The other party is relieved of the legal conflict.
Can I quickly take out legal assistance insurance in the event of (the suspicion of) an ongoing conflict?
If a house is on fire, it is not possible to insure it quickly. This is also the case with legal assistance insurance: conflicts that were already ongoing or where there was a serious suspicion that they would result in a conflict are not covered.
Can I easily cancel legal expenses insurance?
The exact cancellation terms differ from insurer to insurer, but a number of rules do apply. With most insurers, the contract can be cancelled with a notice period of one month before its first anniversary. Afterwards it can be cancelled daily with the same notice period. However, there are insurers that use more flexible cancellation terms.
What does legal aid mean?
Van Dale indicates that it concerns help and advice in legal matters. This is also how legal expenses insurers understand it.
Can my legal expenses insurer allow me to start a lawsuit for any dispute?
No. It is not possible to go to court for every dispute. The decision-making power generally lies with the insurer, who will determine whether it is appropriate to go to court. Among other things, the chances of winning play a role in this.
Are legal costs reimbursed without limitation?
No. Certainly external costs are often limited. The policy conditions state to what extent these costs are reimbursed. There are also often restrictions with some grounds for coverage, such as divorce mediation.
What is the franchise applied by legal expenses insurers?
The deductible is a threshold amount: the insurance will only provide cover if the financial interest exceeds this threshold amount. The amount of the deductible differs from insurer to insurer.
I don't go to court that often. Why should I take out legal assistance insurance?
It is important to realise that legal aid is very expensive. The lawyer's fees alone can sometimes amount to several hundred Euro per hour. When there is a conflict, not everyone can afford it. With legal expenses insurance, you can be sure of good legal assistance. In addition, it is also useful for smaller cases that would otherwise not go to court. Legal assistance insurance improves access to justice. Finally, the insurer also takes a lot of work off your hands.
What is pre-paid legal assistance from the insurer?
Some insurers offer customers who do not have legal assistance insurance the option of relying on their legal assistance for a fixed amount. Often this help only reaches as far as the court (with legal, advice up to a certain point) and there are also all kinds of restrictions. For example, it is not possible for all disputes and additional costs are often for your own account. A good legal assistance insurance is more appealing to most people.
I already have legal aid through the union. Do I still need legal expenses insurance?
Yes. Membership in a trade union only entitles you to advice and legal assistance in employment and income disputes. In addition, family members are not co-insured. Legal expenses insurance remains necessary for a full-fledged insurance policy. The module employment law can then possibly be omitted to cut costs on your premium.
I have a dispute with another company. Can I quickly take out legal assistance insurance?
It is of course always possible to quickly take out legal assistance insurance, but this will not cover the ongoing conflict. Current affairs are always excluded. New conflicts that arise after the start date of the legal assistance insurance are covered.
Does the legal assistance insurance cover legal costs in case of neighbour disputes?
This is the case with some insurers, but there are also a number of insurers for which an additional Housing module must be added to the basic cover. Moreover, there are also insurers, such as legal assistance insurance from a.s.r., that do not cover it at all. A cheaper insurance is therefore not always a better insurance.
Does the legal expenses insurance cover disputes regarding divorce?
Most legal assistance insurance policies offer coverage for divorce mediation, but there are often restrictions. For example, the compensation is usually very limited. There are insurers that reimburse mediation costs of up to 40,000 Euro, but there are also those who limit it to just 1,500 Euro. Waiting times of up to three years are also not uncommon. In addition, there are a number of insurers, including FBTO and Interpolis (source: Consumers' Association, August 2020), that completely exclude divorce mediation.
Does the legal assistance insurance cover legal expenses in criminal cases?
Legal assistance insurance generally does not reimburse this in the event of negligence or intent, but there are also insurers that do reimburse if the insured is acquitted or not prosecuted. If there is no fault or intent, the legal expenses insurance will in principle pay out. In addition, be aware of exclusions. For example, criminal cases related to paid employment are often not covered or are only covered for specific professional groups such as nurses or police officers.
Does private legal expenses insurance also cover conflicts that I have as a self-employed person?
No. There are special legal assistance insurance policies for companies and self-employed people. These are often more expensive because companies have a higher risk of getting into a legal conflict. The insurer is happy to make a detailed calculation.