Signing an employment contract, buying a plane ticket, renting out our home or shopping on the Internet, among many other daily activities, can lead to a conflict of interests that most people do not have the appropriate knowledge or training to resolve successfully.
Advice and procedures
This is why legal defense insurance is so useful, as it covers the insured party’s expenses when intervening in a proceeding, whether it is arbitration or judicial. This legal assistance not only includes handling the formalities of a claim and the subsequent defense, but also information and legal advice to find out where we stand on an issue and what steps we should take.
The basic cover of this type of insurance would include legal assistance over the phone, document management, claims for damages, both bodily and material, contracts for personal property, services or supplies, tax defense and rights relating to habitual residences and squatting.
Specific areas
In fact, many insurance policies already provide this type of cover, as it is common for them to be included in home or rental insurance policies, for example. However, there is another type of legal defense cover that can be taken out separately and which either covers a wider range of benefits or offers this legal defense in much more specific areas.
This is the case, for example, of labor defense against the authorities, defense in relation to domestic service, separation or divorce benefits, real estate mobbing or sexual harassment and aggression. There is also legal defense cover in the field of the Internet, for example, for cases of online identity theft: it is already possible to take out cover for defense and claims against individuals in the event of identity theft, as well as for many other specific cybercrimes.
When this specific insurance is contracted, the insured party can usually appoint their own lawyers and attorneys, and the insurance company will cover their fees up to the limits agreed in the policy.
Exclusions
However, it is important to bear in mind that legal defense cover does not include the payment of fines, indemnities or any expenses arising from penalties imposed on the insured person by the administrative or judicial authorities.
