Fight for justice... using your home cover
Many workers are unaware that their insurance may pay tribunal fees
WORKERS reluctant to take action against employers over discrimination or unfair dismissal because of unaffordable legal costs could unwittingly be sitting on insurance designed to meet these bills.
Fewer people are taking claims to employment tribunals since fees of up to £1,200 were introduced in 2013. Sex discrimination claims have fallen by 71 per cent, race cases by 58 per cent and disability claims by 54 per cent. Unfair dismissal cases have plummeted by 73 per cent.
Concerned by the drop in claims, the Government announced last month it is considering extending the help available to those on low incomes.
But help with pursuing claims – for free – is often available through legal expenses insurance, which millions of householders have as part of their home policy.
One recent high-profile case where legal expenses cover was used was when Lucy Ward won a tribunal against her former employer, Leeds United football club.
Ward, a former Leeds academy education and welfare officer, won her claim for unfair dismissal and sex discrimination in April last year.
FORGOTTEN POLICIES
MANY people forget or are oblivious to the fact that they have legal expenses cover.
James Henderson, managing director of provider DAS UK Group, says: ‘Often policies are bundled into home cover or packaged bank accounts and people do not know they have the insurance.’
Research by comparison website Gocompare found that one in five home policies include legal expenses cover as standard. But in most cases it is sold as an optional extra.
Cover is sometimes included in packaged bank accounts and it can also be bought as standalone insurance.
The additional premium for adding legal expenses to home cover ranges from £3 to £45 a year, while a standalone plan costs between £15 and £30.
Specialist providers include DAS, ARAG, ARC and Legal Insurance Management.
Buyers need to be aware that these policies have limitations. They will fund the cost of legal advice or court bills up to certain limits, but will not pay any damages a policyholder might be trying to claim. These sums must be settled by the losing side if the judge decides in the policyholder’s favour.
No two policies are the same, so it is vital to scrutinise terms and wording. Adam Powell, head of operations at insurance broker Policy Expert, says: ‘Your level of cover can vary significantly. Some plans will cover every eventuality, but others will not be so extensive. If you have taken out legal cover for a certain precaution, make sure you have checked the small print to ensure you are covered.’
WHAT POLICIES EMBRACE
ALL providers give access to free legal advice helplines, while some offer other counselling services.
Most will cover contract disputes, bodily injury, employment claims (including tribunals) and property issues such as party wall disputes or nuisance neighbours. The most comprehensive plans will also cover disputes with the taxman, criminal negligence and identity theft, and will even pay out compensation if work is missed because of jury service.
Gocompare says cover limits usually range between £25,000 and £100,000. Crucially, for anyone wanting to use the cover for an employment claim, the lower limit of £25,000 often applies.
Henderson expects the policies to be appreciated more in coming years as the reduced access to justice takes hold and the working world changes. He says: ‘Younger people are likely to change employers up to eight times in their career, which creates more opportunity for conflict.
‘There will also be issues with zero hour contracts and disputes with companies such as Uber, where drivers recently brought a legal case to say they were employees and not self-employed.’