Legal Expenses Insurance

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The Legal Expenses Insurance is sometimes also called as the Legal Protection Insurance and is Informally called as the Legal Insurance. This type of Insurance protects the policy Holder from the potential expenses the policy holder may incur to initiate the proceeding against the policy holder as well as the legal action Initiated by the policy holder. This type of Insurance policies came into the market for the first time in the year 1911. There are two main forms of Legal Expense Insurance, they are as follows :

• Before the event
• After the event

The event is the event that triggers action on its occurrance. Most of the Legal Expense Insurance policies are before the event Insurance plans and only in United Kingdom after the event policies are popularly sold by the Insurance companies. Europe is the major hub of the Legal expenses insurance business and majority of the polices are sold in Germany and France. In the United States Of America this type of Insurance polices are called as the prepaid Legal Services.

The main purpose of this Insurance plan is to provide affordable coverage for the legal fees charged and to ensure that the legal action can be taken even by those who are not financially very strong and capable. The policies usually covers the Employment disputes, Litigation with the trade Unions, Human Rights Disputes and some times even the Criminal Actions are covered as well.

The policy coverage is usually not discretionary and if the event included in the policy takes place the claim can be recovered and the policy responds. In addition to the Liability Insurance(earlier discussed in the previous article) the Legal expenses Insurance can offer additional coverage for events which can be predicted like drafting of the power of attorney or the will.