Do I need legal expenses insurance?
There are many types of legal expenses insurance. Private, traffic, business, combined legal expenses insurance and so on. Legal expenses insurance is therefore a "book with seven seals" for many customers. The terminology doesn't help much either. For example, you can guess that you cannot defend yourself against your employer who simply dismisses you, but you also do not know whether this case is really covered by your private legal expenses insurance.
Attention additional insurances
A good example is the "legal expenses insurance" that is included in your car insurance. In certain cases, this may concern the "contract law" of the car purchase. In other words, whether everything is in order with the purchase contract and whether the contract says the same things that the seller told you.
This does not have much to do with normal traffic legal protection. This insures other things such as, for example:
- Non-commercial contracts in connection with vehicles, ships and aircraft.
- Criminal defence and administrative proceedings (withdrawal of identity papers, etc.)
- Damages and compensation
- patient law
- Insurance law: private insurance, social security, health insurance
- Property and real estate law relating to vehicles, ships and aircraft
What you must bear in mind when taking out insurance
An old insurance expert saying goes, "You can't insure a house that's on fire." 😊
Of course, this proverb does not only apply to houses - but also to legal expenses insurance. Consequently, you can only insure things before a loss event - actually logical. That's why legal expenses insurance has so-called waiting periods. In the case of private legal expenses insurance, this can last up to three months. The waiting period offers the insurance company a certain protection against insurance abuse. For example, if you suspect that you will soon be in trouble with your boss, you cannot quickly take out private legal expenses insurance.
The harsh reality - the advantage of legal expenses insurance
Unfortunately, we at Caveo have to realise time and again that legal expenses insurance is above all purely a form of protection. Let's take a traffic accident as an example. Here there can be 4 possible starting points:
You both have no legal expenses insurance = it's fair.
You don't have legal expenses insurance, but the other party does = bad luck for you!
You have one, he doesn't = bad luck for the other party!
You both have one = bad luck for both.
A comparison of benefits is always worthwhile - Caveo will do this for you.
Especially with legal expenses insurance, a comparison of benefits is very worthwhile. Here, the scope of the insurance cover should always be in the foreground and the price comparison in second place. Because whether the sum insured is CHF 500,000 or CHF 600,000 is not so important - but whether the insurance cover is only for you or also for your family is.
We at Caveo therefore recommend that our clients always take out legal expenses insurance - because "being right and getting right are two different things". Just send us a short chat message if you want us to send you a quote - it's worth it.