Do You Need Legal Expenses Insurance?

For most people, the answer is yes. Legal expenses insurance provides essential protection against costly legal disputes that can strike anyone at any time. Ever found yourself in a sticky situation where you need legal advice but can’t face the eye-watering solicitor fees? Picture this: you’ve slipped at work, your employer won’t pay your wages, or that new sofa you ordered turned up looking nothing like the photo.

These situations happen more often than you’d think, and without proper legal cover, sorting them out can cost you a fortune. Legal expenses insurance (also known as legal protection or legal expenses cover) is designed to help when life throws you these curveballs

What’s legal expenses insurance?

Legal expenses insurance (LEI), or legal cover, is a type of insurance that helps with legal costs when you need to take legal action or defend yourself in legal disputes. Think of it as your safety net when things go wrong and you need professional legal advice or representation.

Unlike your main home insurance policy, legal expenses insurance specifically covers the costs of legal proceedings rather than physical damage or loss. It’s typically offered as an optional add-on to your existing cover, making it an affordable way to protect yourself against hefty legal fees.

Most legal protection policies cover legal costs up to a set limit, often between £25,000 to £100,000, which might sound like a lot, but legal fees can spiral quickly. A straightforward employment tribunal case could easily cost several thousand pounds, whilst more complex property disputes or personal injury claims can reach five figures.

What does legal expenses insurance cover?

Legal expenses insurance provides comprehensive protection across many areas of daily life, but like all insurance policies, it has specific boundaries. Understanding what’s included, and what isn’t, helps you make informed decisions about your legal protection needs.

What’s covered	What’s not covered
Employment disputes	Family matters
Personal injury claims	Pre-existing disputes
Property disputes	Motor vehicle claims
Consumer rights	Criminal matters
Clinical negligence	Tax and inheritance
Contract disputes	Social media defamation
24/7 Legal advice helpline	School admissions

Employment Disputes: If you’re facing issues at work, legal protection can be a lifesaver. This covers situations like unfair dismissal, discrimination, or when your employer won’t pay your wages. Whether you need to take your case to an employment tribunal or simply need legal advice on your rights, this coverage has you sorted.

Personal Injury Claims: From a slip at work to food poisoning from a restaurant meal, personal injury claims can be complex and costly to pursue. Legal cover helps you get the compensation you deserve without worrying about legal fees if your case doesn’t succeed.

Property Disputes: Own or rent your home? Property disputes with neighbours, landlords, or contractors are more common than you’d think. Whether it’s noisy neighbours disrupting your peace or a dispute over property damage, legal assistance can help resolve these issues professionally.

Consumer Rights: We’ve all been there: faulty goods that the retailer won’t replace, or a travel agent who’s breached their contract. Consumer agreement disputes can be frustrating, but with legal support, you can pursue your rights without the financial risk.

Clinical Negligence: If you’ve suffered an injury due to incorrectly performed medical procedures, clinical negligence claims require specialist legal expertise. This coverage ensures you can access the legal help you need to pursue compensation.

Contract Disputes: Whether it’s a service provider who hasn’t delivered what they promised or a supplier breach, contract disputes can be complex. Legal protection covers the costs of enforcing agreements and seeking remedies when things go wrong.

Important Requirements:

• Your case must have a reasonable chance of success as assessed by legal experts
• You must notify your insurance provider as soon as a dispute arises
• Coverage applies up to the policy limit (typically £50,000 per claim)
• Legal action must fall within policy terms and not conflict with exclusions

The beauty of legal expenses cover lies in its breadth, it protects you across multiple areas where legal disputes commonly arise. However, the exclusions ensure the policy focuses on civil disputes rather than personal family matters or criminal issues that require different types of legal support.

How does legal expenses insurance work?

When you need to use your legal cover, the process is typically straightforward:

1. Contact the helpline: Most providers offer a 24/7 legal advice helpline where you can get initial guidance
2. Case assessment: The insurance company will evaluate whether your case falls within the policy terms and has a reasonable chance of success
3. Solicitor appointment: If your case proceeds, they’ll appoint a solicitor from their panel of legal experts
4. Cover confirmation: Once approved, your legal costs are covered up to the policy limit

For Lemonade customers with the Legal Protection add-on, you can call 0345 030 7960 for legal emergencies or advice, available 24/7. 

Picture this: Your builder damages your newly installed kitchen during a bathroom renovation and refuses to pay for repairs. You call the legal helpline immediately, explain the situation, and within 48 hours you’re assigned a specialist property disputes solicitor. After three months of negotiations backed by legal expertise, the builder agrees to pay £4,500 in damages. Your legal costs? £2,800, all covered by your policy. Without legal protection, you’d either be £2,800 out of pocket or stuck with a damaged kitchen.

The key thing to remember is that you must notify your insurance provider as soon as a dispute arises. Waiting too long could affect your ability to claim, so don’t hang about if legal issues crop up.

How much does legal expenses insurance cost?

Legal cover is generally quite affordable, especially when added to an existing contents or buildings insurance policy. Most insurers offer it as an add-on for just a few pounds per month, making it excellent value considering the potential costs it protects against.

Check out the expected hourly rate for solicitors in the UK based on their experience level. 

Experience level	Average hourly rate
Newly qualified or junior	£100 – £200
Mid-level or experienced	£200 – £300
Senior or highly-specialised	£350 or more

When you consider that even a basic solicitor consultation can cost £200-400 per hour, and a simple legal dispute might require 10-20 hours of work, the mathematics are pretty compelling. A complex case could easily reach your cover limit that most policies provide.

Is legal expenses insurance worth it?

For most people, legal protection offers genuine peace of mind at a reasonable cost. Legal issues can strike anyone at any time, from workplace disputes to problems with faulty goods, and the financial risk of pursuing or defending legal action can be significant.

Consider these scenarios:

• Your employer dismisses you unfairly, and you need to take them to an employment tribunal
• A contractor damages your property and refuses to pay for repairs
• You suffer a personal injury due to someone else’s negligence
• A retailer refuses to refund you for faulty goods worth hundreds of pounds

In each case, legal action might be your only recourse, but the potential legal fees could outweigh any compensation you might receive. Legal expenses cover removes this barrier, allowing you to pursue legitimate claims without financial worry.

How can I choose the right legal protection? 

When selecting legal cover, consider these factors:

Coverage limit: Most policies offer limits between £25,000 to £100,000. Pick a level of cover that suits your needs. 

Scope of cover: Ensure the policy covers the areas most relevant to your situation. If you’re self-employed, for instance, employment dispute coverage might be less relevant.

Helpline access: A 24/7 legal advice helpline is invaluable for getting initial guidance on whether you have a valid case.

Choice of solicitor: Some policies let you use your own solicitor (often after paying an excess), whilst others require you to use their appointed legal experts.

Exclusions: Read the small print carefully to understand what’s not covered.

Lemonade’s legal protection add-on

If you’re already a Lemonade customer, adding Legal Protection to your home insurance policy is straightforward and cost-effective. Our add-on covers up to £50,000 in legal costs per event across all the key areas: personal injury, employment disputes, property disputes, consumer agreements, and clinical negligence.

What sets Lemonade apart is our commitment to transparency, no confusing jargon or hidden exclusions. We’ll clearly explain what’s covered and what isn’t, so you know exactly what protection you’re getting.

Our 24/7 legal advice helpline means you can get immediate guidance whenever legal issues arise, helping you understand your options before situations escalate.

Final thoughts

Legal disputes are an unfortunate reality of modern life, but they needn’t be financially crippling. Whether it’s an employment dispute, a problem with faulty goods, or a personal injury claim, having legal protection means you can focus on the merits of your case rather than the potential costs. For just a few pounds per month, it’s cover that could save you thousands whilst giving you access to professional legal assistance when you need it most.

Ready to protect yourself from unexpected legal costs? Get a quote with Lemonade today and add our Legal Protection to get the legal support you deserve, because everyone should have access to justice, regardless of their bank balance.

FAQs about legal cover