Legal Expenses Insurance (quite urgent)

adamdynamic

Hello,

Firstly, thanks in advance for any advice that can help me out here, I'm in a bit of a pickle and could use a little guidance.

Basically my situation is this:

- I resigned from my position with Company A last Monday
- I have a job interview on Thursday (with a high chance of being offered a job, based on my skills and the industry I'm in) with Company B
- The problem is that my employment contract with Company A has covenants in it that restrict the type of company I can work for (i.e. a competitor) within 3 months of leaving
- I sought legal advice which stated that Company A would struggle to enforce these convenants and that I should be fine to accept the job with Company B if it is offered to me.
- The fact that I 'should be fine' might not stop Company A from pursuing me anyway.
- That would be expensive.

My question is basically around 'Legal Expenses Insurance' - the Insurance page on the MSE site doesn't seem to cover legal expenses insurance, and a search of this forum doesn't seem to bring anything up either.

Has anyone any experience dealing with this type of insurance? Any recommendations? Google seems to produce a few hits but knowing which companies I can trust and which I can't is something else completely.

Any help would be appreciated!

Many thanks,

Adam.

dacouch

Do you have Domestic Legal Protection Cover on your home insurance? If so they may cover this, failing that they normally give you free legal advice on employment issues.

If you are a member of a trade union, trade organisation they often give legal protection cover / advice to their members.

If you do not have legal protection cover your home insurance will often give you access to free legal advice (The number is normally in your policy booklet next to the claim telephone number)

Failing that see the citizens advice bureau

My understanding of these covenents is they are not always enforcable as the law looks on them as unfair contracts / restriction of trade. But I'm not an expert on this so please check what I'm saying eg with your Legal Protection Cover.

adamdynamic

Hey,

Many thanks for the speedy reply!

I've already met with a solicitor and sought legal advice, he said that they would have difficulty enforcing the covenants and that he would take the job if he were in my position.

My concern is that my old company will pursue me through the courts, while I am confident (based on received legal advice) that I would win, it is never 100% and I feel that the costs would be very high.

The current providers of my house insurance (Direct Line) offer 'Family Legal Protection' as an optional extra, in the T&Cs under 'employment' however it states that I wouldn't be covered for anything that occurs within the first 90 days of my coverage. As I haven't taken out the extra legal protection with them yet, this would almost certainly fall within that 90 days so wouldn't protect me.

Unfortunately I am not a member of a Union, the Advice Bureau might be able to 'advise' me but what I really need is a solicitor should the preverbial hit the fan.

Again, thanks for your help though, if anyone could point me in the right direction that would be appreciated!

Adam.

Quentin

You have had professional legal advice - why not act on it?

No-one can predict 100% whether or not they will take you to court.

Your prospective employer will know that sometimes these clauses are put into contracts, so if you are made an offer, maybe you could discuss this with them at that time.

adamdynamic

Hey,

I intend to act on the advice (i.e. take the job if it is offered), my concern is however that should 'Company A' take action against me, I would incur substantial legal costs defending myself.

The solicitor I met with told me that there is 'Legal Expenses Insurance' available and suggested I take some out as a precaution against potentially having to defend myself, I was just hoping someone had some experience with this type of insurance and could point me in the right direction?

Any help would be appreciated!

Adam.

Quentin

Your solicitor can arrange this, and should know all about it.

"After the event" policies are available, and the premium would be based on your chances of winning, should the matter end up in court.

Tweetinat

Quentin wrote: »

Your solicitor can arrange this, and should know all about it.

"After the event" policies are available, and the premium would be based on your chances of winning, should the matter end up in court.

Hi Quentin - I didn't know policies like this existed. Do you have any links you could provide? I'm not in a position to ask a solictor (just yet) about this type of cover.

Many thanks in advance,

Natalie

Quentin

Just google for after event insurance.

Tweetinat

Quentin wrote: »

Just google for after event insurance.

Absolutely brilliant, many thanks! My OH is taking his old employer to an employment tribunal and they're playing games which will cost us lots of money to resolve. I'll look into this and fingers crossed we'll qualify. Thanks again

adamdynamic

Tweetinat wrote: »

Absolutely brilliant, many thanks! My OH is taking his old employer to an employment tribunal and they're playing games which will cost us lots of money to resolve. I'll look into this and fingers crossed we'll qualify. Thanks again

I guess this is similar to my position, only it's my old employer taking me to a tribunal that I'm concerned about.

What cover is available for 'before the event'? My solicitor mentioned my home insurance would likely cover me, my current insurers won't however and any insurers I've looked at this afternoon seem to exclude contracts relating to employment as being covered?

Has anyone else been in this situation before?

Tweetinat

kissack101 wrote: »

I guess this is similar to my position, only it's my old employer taking me to a tribunal that I'm concerned about.

What cover is available for 'before the event'? My solicitor mentioned my home insurance would likely cover me, my current insurers won't however and any insurers I've looked at this afternoon seem to exclude contracts relating to employment as being covered?

Has anyone else been in this situation before?

As you've already found, you typically can't make a claim for any event that happens within 30/60/90 days following the acceptance of an insurance policy, so I very much doubt you'll get 'before the event' insurance now sadly. .. I think the ATE is likely to be the only way to go.

As an aside, my previous employer (ironically also the same one my OH is taking to ET) tried to insert similar clauses into my contract a year or so before I left. I took legal advice at the time and was told that they wouldn't be able to enforce it as it was very broad and general. I would take the advice you've received and take the new job without worrying too much about it. If it comes down to it, just take the ATE insurance route.