Glossary
Have you come across some legal insurance jargon or acronyms you don't understand? Find answers in our easy-to-use glossary.
A legal firm appointed by a legal expenses insurance company to act on your behalf.
A unique reference number an insurance company will provide to you to identify your claim.
The amount that you have to pay towards the cost of any claim. Your policy wording will specify how much your cover excess is. Also known as policy excess.
The day on which your claim is concluded or settled by the appointed representative. This may be different from the date the claim is closed.
This is when an insurer declines a claim. This may be because the issue is not something that is insured under the policy or because there is a specific exclusion or condition that means that cover is not available.
The different areas of cover under a policy. Each element of cover in a legal expenses insurance policy relates to a different area of law, such as employment disputes or property disputes. Also known as head of cover.
The conduct regulator for financial services firms and financial markets in the UK.
Insurance cover that is in place on a temporary basis whilst an insurer is waiting for further information from the customer in order to confirm cover can be provided.
This is the date on which a lawyer first makes a request to a court or tribunal, asking them to hear a case.
Legal fees are what law firms charge for their services. This doesn’t include additional costs such as disbursement or expert reports. Under a legal expenses policy these costs would be included in the cover.
The minimum amount of money an insurance company will allow a policy to be taken out for. This amount is usually based on how much it costs the insurance company to provide the service.
The law firm or barrister chambers that an insurer chooses to provide you with legal services. These legal specialists are chosen as they have the proven expertise to deal with the claim.
A limit on the amount an insurer will pay out in total under a policy. For limits on individual claims, see limit of indemnity.
A lawyer, accountant or other qualified person appointed by a legal expenses insurer to act on your behalf.
The general area of law that a claim relates to; for example, a contract dispute or an employment dispute.
This can include a range of different things that your legal expenses insurer may pay for, including your representative’s fees, court fees, the costs of experts, legal costs if you are ordered to or agree to pay them.
The date on which the incident which led to your claim happened. For example, if you had an accident which led to a personal injury claim, the date of occurrence would be the date when the accident happened.
Expenses and fees which are not included in the lawyer’s legal fees, such as court fees or the lawyer’s travel costs. These won’t be covered under a no win no fee agreement, but may be covered by your legal expenses insurance.
A way for an insurance company to extend or restrict the cover provided under an insurance policy. It can be used to change specific conditions, exclusions, definitions or areas of cover.
A service that provides independent help to settle disputes between consumers or small businesses and UK-based businesses providing financial services such as banks, building societies, insurance companies and investment firms.
If your policy provides you with a hire vehicle while your car is off the road, the hire provider is the company that provides you with the car.
An event that is covered under the terms of the policy and accepted by the insurance company.
The process of filing details of a claim at a court or tribunal. This happens after the case has been assessed, all evidence has been gathered and the defendant has been notified.
The limit of indemnity is the maximum amount that your insurance will cover for a single claim.
An agreement where you will not have to pay the lawyer’s fees if you are not successful. This only relates to your lawyer’s legal fees and not disbursements or other costs you may be ordered to pay.
The percentage likelihood of a legal case being won. For many types of claims, the insurer must be confident that there is a 51% or higher chance of the case succeeding for an insurer to cover any legal fees.
This is when an insurer agrees to extend the countries or areas where the insurance cover applies. For example, if the standard territorial limit is England and Wales, the insurer agrees that cover can be extended to include incidents that happen in the whole of the UK.
A policy you can buy to cover the costs of a legal dispute after it has arisen. This type of insurance is usually provided alongside a ‘no win no fee’ agreement with a legal firm.
What you would probably think of as “normal” insurance; it is legal expenses insurance that is purchased before anything that would lead to a claim has happened to protect you from the cost of problems in the future.
A situation where self-interest and professional or public interest clash – for example, when the same law firm is representing both parties in a dispute.
The date that action that leads to a claim takes place. For example, the date of accrual for a contract dispute would be the date that the contract was breached and not the date that you became aware of the breach.
Legal services or legal representation that is not covered by the policy but is offered at a discounted rate to legal expenses insurance customers.
A term in a policy wording or insurance contract that specifies incidents for which an insurer is not willing to take on the insurance risk. For example, under a legal expenses policy, the insurer may be willing to cover contract disputes but not contracts that relate to the purchase of financial products.
A specified minimum amount that you must have lost before your insurance cover applies. For example, a contract dispute might only be covered under a legal expenses policy if the minimum value of the contract in dispute is more than £250.
Anyone who is covered by the insurance policy. Each policy will have its own specific definition of an insured person.
An insurance policy which funds the costs of legal advice and/or the costs of fighting a legal dispute.
A lawyer who specialises in taking action against individuals and companies, usually in court.
A legal expenses insurer will have a panel of lawyers and other legal experts they appoint to deal with claims; this is the panel of representatives. The panel will be assessed and monitored to ensure that they are providing the best level of service to customers.
The prudential regulator for financial firms, including insurers, in the UK.
This is the physical limit of where an insurance policy applies. For example, your policy may only cover events that happen within the UK or the EU.
A period at the beginning of a policy wherein claims will not be covered; this is to prevent people from buying a policy when they know they are likely to have a claim soon. Waiting periods usually do not apply if you had similar cover in place before – e.g. If you have a new policy because you’ve changed insurer.