Growing public awareness of legal rights and an increasing willingness to take legal action against an organisation compound the risk faced by businesses in the UK today. Below are examples of situations that have led to a legal dispute and details of the final outcome.
Employment Tribunal
The policyholder at a housing association was being taken to employment tribunal by an ex-employee for unfair dismissal. Solicitors were appointed to act upon the policyholder's behalf and investigations were made. These found that a complaint had been made about the ex-employee by a former colleague, and that there had been two witnesses to the ex-employee assaulting a hostel resident. The policyholder had taken the view that this constituted gross misconduct and that the proper course of action was to fire the applicant. The tribunal found that in all circumstances, the policyholder had acted fairly and the claim was dismissed.
DAS paid the solicitors' fees of £12,178.
Tax Protection
The policyholder received a letter from HM Revenue & Customs saying that they owed £4,500 in unpaid PAYE and National Insurance contributions. The tax consultant appointed to represent the policyholder was able to quickly resolve the dispute in the policyholder's favour by implementing a simple procedural change, which met with the approval of both parties.
DAS paid the tax consultant's fees of £925.
Comment from MasterPolicy's Simon West: MasterPolicy have been subject to a 'random selection' tax inspection which resulted in extensive additional work on my part, as well as involving my accountants. The fees paid by DAS amounted to £2000.
Bodily Injury
A policyholder's employee tripped, fell badly and sustained a serious ankle fracture on a third party's premises. The policyholder contacted DAS to make a claim for negligence against the third party. DAS appointed solicitors and a barrister to represent the injured. There were several witnesses to the incident, however litigation had to be delayed pending the employee's medical condition stabilising. Medical reports from the orthopaedic confirmed that the employee would never have full use of his ankle again and would always suffer a degree of pain. The third party refused to accept liability and the case went to court. The injured employee won their case and a compensation payment of £13,000 was ordered.
DAS paid the legal costs which exceeded £3,500
To combat these and other possible legal actions, MasterPolicy has negotiated a DAS Legal Expenses facility for all Commercial and Not for Profit clients which will be offered to them at next renewal or - if they are a new client to MasterPolicy - at inception.
The policy will pay legal costs up to £50,000 including solicitors' and barristers' fees, court costs, expenses for expert witnesses, attendance expenses and accountants' fees. DAS will also pay the costs of appealing or defending an appeal. In all instances, it must be more likely than not that any action taken will be successful. For specific cover details download the Key Facts document, click here.
Premiums for DAS Legal Expenses are based on wage role and start at just £52.50 per annum, inclusive of Insurance Premium Tax. For a bespoke quotation, please contact our office or complete our enquiry form, and one of our team will be happy to assist you.