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LEGAL EXPENSES INSURANCE OVERVIEW

This policy covers the legal costs of pursuing or defending certain classes of legal action where the Insured has a reasonable prospect of success.

It is not a substitute for liability insurance policies but complements them by providing additional cover, such as legal pursuit costs. Legal pursuit costs cover the cost of legally enforcing the Insured’s rights against those who have harmed the Insured. A legal advice service is also automatically included.

Summary of the cover provided

The cover provided by the policy is found in eight sections:

1. Criminal defence for the Insured

Significant Exclusions include:

  • Use or ownership of vehicles, aircraft or watercraft
  • Allegations of murder or culpable homicide
  • Offences against the person including offences of a sexual nature
  • Drugs, alcohol, indecent or obscene materials
  • Immigration
  • Income Tax
  • Deliberate wrong doing including fraudulent or dishonest acts

2. Criminal defence for the employees

Significant Exclusions include:

  • As per exclusions reflected above
  • Cover is limited to wrong doing in the course of their employment

3. Pursuing others for physically damaging the Insured’s business premises or owned goods

Significant Exclusions include:

  • The goods are limited to those at the Insured’s business premises, or elsewhere for the purposes of installation
  • Goods in Transit
  • Contractual Disputes
  • Goods hired from or lent to third parties

4. Tenancy disputes for both defence and pursuit in terms of breach of lease or tenancy agreement between the Insured and their landlord or tenant

Significant Exclusions include:

  • Non-payment of rent
  • Disagreements over renewal of the lease

5. Statutory Licence Protection – appeals against the suspension,  revocation, alteration of terms or refusal to renew a Statutory Licence

Significant Exclusions include:

  • New license application
  • Vehicles
  • Alterations of terms or refusal to renew caused by a change in legislation
  • Licence applications where the Insured has had previous disputes on that licence prior to the inception of this Policy

6. Defence at an inquiry

Significant Exclusions include:

  • Routine supervision by a professional, statutory or official body
  • Investigation of industry-wide violations

7. Injury to employees

Significant Exclusions include:

  • Cover is limited to losses where someone other than the Insured is being sued

8. Contractual disputes between the Insured and their customer

Significant Exclusions include:

  • Recovery of undisputed debt
  • Contracts related to vehicles
  • Licensing and property rental disputes
  • Employment contracts
  • Fixed property
  • Construction contracts
  • Computer software
  • Subject to a 90 day waiting period

A choice of two indemnity limits are offered

1. R1 000 000 any one claim with an annual aggregate of R2 500 000
2. R2 000 000 anyone claim with an annual aggregate of R5 000 000

Contact us at camargue@camargueum.co.za to find out more.

Important Documents:

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