Legal Insurance for Employment Tribunal

The_Offside_Rule

Good morning all - I'm not sure if this should be in this forum or the Employment one.

Anyway, can anybody advise on whether an insurer would pay Tribunal legal fees if an employee added legal cover to their home insurance just after being dismissed?

An appeal meeting has been requested and could possibly end up in Tribunal.

Thanks!

paddyandstumpy

I doubt it, as the event which caused the tribunal has happened.

sal_III

I highly doubt it, as the insurance events has sort of already happened. You can call some insurance providers and ask.

On the side not, read carefully what the home insurances legal cover covers. Last time I was looking at comparison sites all of the cheap quotes that included legal cover, where only covering a hand full of obscure events and where only there to tick a box for hasty money savers.

The_Offside_Rule

Oh no. I was hoping that because the process of arranging a tribunal haven't yet been made, it wouldn't be classed as an ongoing issue.

Weighty1

The_Offside_Rule wrote: »

Oh no. I was hoping that because the process of arranging a tribunal haven't yet been made, it wouldn't be classed as an ongoing issue.

That's almost akin to wanting to add flood cover to a home insurance policy when the water is lapping at the door but has yet flooded the house.

Old_Lifer

The general insurance principle of 'utmost good faith' requires that if you intend adding legal cover to your policy you must advise your insurer of this possible claim.

nick74

Weighty1 wrote: »

That's almost akin to wanting to add flood cover to a home insurance policy when the water is lapping at the door but has yet flooded the house.

Strangely enough I was in a very similar situation last month with business insurance when a river near our compound was about to burst it's banks. I phoned the insurer to increase the cover, fully expecting them to say no, but they didn't. As it turned out it was a very good gamble on their part as the water didn't actually reach our yard, but they gained an extra £3k in premiums!

davidwatts

Old_Lifer wrote: »

The general insurance principle of 'utmost good faith' requires that if you intend adding legal cover to your policy you must advise your insurer of this possible claim.

No it doesn't. You only have to answer specific questions that you are asked when applying. Unless you are asked if you are aware of any circumstances that could give rise to a claim you don't need to advise them of these circumstances. The days of customers having to disclose any additional information that might influence a "prudent insurer" are long gone. (2012's Consumer Insurance Act formalised the position.)

It is the policy wording that is likely to ensure that a circumstance like this would not be covered.

The_Offside_Rule

When I phoned to add the cover to my existing home insurance policy, I was asked no questions whatsoever. Could that be because I've six years no claims?

davidwatts

Nope. Insurers don't tend to ask any specific questions relating to this add on and don't really class using the Legal Expenses cover as a claim in the same way they would loss or damage to property.

Everyone will be asked the same questions regardless of how many years no claims they have.

Old_Lifer

It is some years now since I took my Chartered Insurance Institute exams, so I looked on the CII website and my understanding is the 2012 Act only modified the duty not to misrepresent a material fact in a consumer insurance contract. I understand the 2015 Insurance Act further modified this and lists remedies available to the insurer where a material fact is withheld.


The insured is seeking to extend the policy to provide a new area of cover. In my view, the fact that there is a potential claim in the pipeline is a material fact and should be disclosed.


Accident Insurance (Household & Motor) is not my speciality. Perhaps someone who actually works in Home Insurance may have thoughts on this.