As an employer, are you aware of the risks of unfairly dismissing an employee, paying inadequate redundancy or any other forms of mistreatment of your staff?

In the event of any of the above, if the employee has taken out legal expenses cover, you could be liable to a considerably large pay-out.

Legal expenses cover, which pays solicitors' bills should a dispute occur (which could include a medical negligence or injury claim) can be added to most buildings or home contents policies for an extra charge, typically about £25 a year.

Around half of policyholders buy it.  Many view it as an expensive add-on at a time when premiums on essential insurances are rocketing, but where claims are made, having legal expenses cover in place could prove to come in very useful for employees who have been the victim of mistreatment at the hands of their employers.  

"The benefit of cover is that it provides immediate access to free legal advice and an easy way of starting the legal process," says John Portwood of independent broker B Portwood & Co in Consett, Co. Durham. "It saves consumers looking through the phone book for solicitors, who may not specialise in their needs.  Importantly, customers don't have the worry of paying costs if they lose a case.  This often puts people off purchasing a legitimate legal battle."

Trade Union members may already have some legal cover through their membership.

Graham Trudgill of the British Insurance Brokers' Association says: "At a time when many people are worried about job loss in the economic downturn, advice on employment law and knowing your rights in a redundancy – whether that's through a union or a home insurance legal cover policy – could be hugely valuable."

If you are concerned by the issues raised here and would like advice on how to protect your business from this type of legislation, please get in touch with us at: enquiries@hcsgroup.net or telephone 0843 289 0427.

Read the full article here