Many Removals and Storage companies now regard Legal Expenses cover as an important product in their portfolio of insurance policies. There have been many legislative changes during recent years and businesses can be faced with lengthy and expensive legal disputes at any time. The need to have comprehensive cover has never been greater.

Why do you need this cover?

In 2006 the government launched ‘’a root and branch’’ review of how workplace grievances were being resolved. This followed the incredible finding that the number of employment disputes reaching the courts had increased by 30% to 115,000. Any employer who has been involved in defending an employment dispute through the judicial system will appreciate how time consuming and debilitating this can be, even if you have a solid defence.

While the government are now attempting to reduce the number of disputes reaching courts and tribunals, and, are attempting to streamline how cases are concluded, status quo remains. Current legislation means that the maximum award for a claim in respect of unfair dismissal is £60,600, with discrimination fines unlimited in amount. In addition, legal costs now average over £200 per hour.

Disputes can arise for many reasons. Legal Expenses cover is not just there for when you do something wrong but also when you are accused of doing something wrong. They can also help out when unforeseen awkward events arise, for example if a senior member of staff is called for jury service.

Some removers may have a legal expenses cover through the Chamber of Commerce or Federation of Small Business. However, many of these policies may not provide adequate protection for the many risks you face as a business. It is worth taking the time to review your present cover. Your insurance broker should be happy to do this with you, whether the policy is placed by them or not.

The Benefits to You

In addition to providing 24 hour access to a legal helpline manned by professionals, insurance cover may also provide some of the following as standard:
• Employment Defence, covering unfair dismissal & race or sex discrimination cases
• Tax Investigations and VAT Disputes
• Criminal Prosecution
• Property Disputes
• Data Protection Act
• Personal Injury, covering the insured, your employees and families
• Loss Adjuster Fees for losses greater than £10,000
• Jury Service Cover & Witness Attendance Expenses

Some insurers can provide very wide cover that may include optional extensions for Contract Disputes and Statutory Licence.

What to do next?

If interested in this type of cover and you have not had a loss of this type in the last couple of years then it is very straightforward to arrange cover. Premiums can start as low as £340.00. If you want to get a quote or review your current cover give your insurance broker a call.

PoundGates is a broker specialising in the provision of Insurance & Risk Management to the Removals Industry

For further information please contact the PoundGates team
e-Mail: info@poundgates.com or 01473 216406
Authorised and regulated by the Financial Services Authority