Broker Training – Family Silver Legal Expenses
Family Silver Sales Process
The Lexelle Family Legal Expenses (Silver Cover Option) may be offered as an optional additional cover to a policyholder’s main Home & Contents insurance policy and offers the policyholder and residing family members cover for a range of common potential legal issues that can arise.
It is important to run though the following key product features, covers, special restrictions and some important areas that would not be covered by the policy as a minimum set of declarations prior to the sale of the policy.
Family Silver Summary of Key Covers
Free Legal Advice Telephone Helpline service for legal issues falling under the jurisdiction of the courts of England, Scotland, Wales and Northern Ireland.
This section of cover will provide legal assistance to recover compensation should the policyholder suffer personal injury or death.
Cover for legal costs to represent the policyholder for a claim against their employer for unfair or wrongful dismissal, redundancy or unlawful discrimination by their employer falling within the jurisdiction of an Employment Tribunal.
Cover for costs to represent the policyholder in any appeal proceedings in respect of a full enquiry by the Inland Revenue into their PAYE or P11D personal tax earnings as an employee.
Cover for payment of the policyholder’s salary or wages, up £100 a day for the time that they are off work whilst attending jury service where these are not legally recoverable from the court or the their employer.
Covers legal costs for negotiation of the policyholder’s legal rights in a dispute, where the amount in dispute is more than £100 arising from an agreement, which the policyholder has entered into for the buying or hiring of any goods or services or the sale of any goods.
Covers legal costs for negotiation of the policyholder’s legal rights in a civil action relating to material property which is owned by them (including their principal home) following an event which causes, or could cause, physical damage to such property including any nuisance or trespass.
The maximum indemnity limit is £50,000 of legal costs in any one annual policy period (Note: specific limits apply to various sections of the policy as detailed above)
Please ensure that the policyholder is made aware of the following policy conditions and exclusions prior to purchase.
Family Silver Summary of Key Exclusions
The Legal Advice Helpline is not to be used as an alternative to making a claim under the policy and offers general telephone advice only.
There is a policy excess of £250 payable by the policyholder for all employment dispute claims.
Excludes the following;
(a) contracts related to profession, business or employment.
(b) sale or purchase of land or principal home.
(c) contracts involving a motor vehicle.
(d) disputes relating to advice or settlement of an insurance policy or financial product.
(e) any contract related to building or construction work including internal / external structural work including extension work at the policyholder’s main residence.
HMRC enquiries into earnings related to self-employment are not covered as are any claims where the policyholder has made deliberate misstatements and/or omissions to the HMRC.
Does not cover any loss of earnings related to self-employment.
Excludes the following;
(a) any work carried out by any local or public authority unless the claim is for accidental damage (b) any claim relating to a motor vehicle.
(c) claims related to mining subsidence.
(d) boundary disputes.
(e) there is a policy excess of £250 payable by the policyholder for any nuisance or trespass related claims under this section.
Family Silver Policy Conditions and General Exclusions
- The policy covers the policyholder and any member of their family (including civil partners and children for whom the policyholder and spouse/civil partner are the legal guardian) that permanently resides with them at their main home of residence
- All claims must be reported as soon as possible and in any event within 180 days of the event giving rise to the claim
- For all legal claims there must be a reasonable prospect of success, i.e. a greater than 51% chance, that a claim will succeed and the claimant will be able and likely to obtain the compensation or none financial result that they are seeking.
- Any legal or associated costs that the policyholder has incurred prior to reporting the claim are not covered
- All claims for any matter that was not caused by a specific or sudden incident/event are excluded
- Any claims that arise from a criminal act or omission are excluded
- Any claim for incidents that occurred outside United Kingdom & Northern Ireland are not covered as are any claims that occurred outside the period of cover detailed on the policyholder’s policy schedule
Lexelle’s Family Legal Expenses Insurance is designed to provide cover to support families with some of the more common legal issues that may arise. This includes problems at work, tax enquiries, personal injuries and contract issues following the purchase of goods or services.
The 24×7 Legal Helpline service is restricted to the provision of generic legal advice over the telephone and no formal correspondence will be entered into by the helpline. The helpline is not to be used as a substitute for making a claim on the legal expenses policy.
Yes – as long as the members of family reside with the main policyholder at their principal residence.
Yes – the policy limit for legal fees and assistance in any one annual cover period is £50,000. Some policy sections have a specific limit, in particular the Employment Section has a £25,000 limit and Jury Service payment is up to a maximum of £1,000 in total.
Yes – the policy provides cover for up to £25,000 for legal fees concerning a claim for unfair or wrongful dismissal, redundancy or unlawful discrimination by an employer.
Will the policy cover the policyholder for a dispute relating to the purchase of a new home that the policyholder and their family intend to live in?
No – The Lexelle Family Legal Expenses Silver policy does not cover for disputes related to the sale our purchase of a principal home. (Note:-If you offer the Lexelle Family Legal Platinum cover that does provide cover for this.)
The Personal Injury section will cover the policyholder and family members for legal assistance in support of a claim due to their suffering personal injury or alternatively support to their estate where the injury has caused their death.
The policyholders motor policy covers them for legal assistance, why would they need to purchase this as well?
Motor Legal Expenses cover is normally restricted to support the policyholder in pursuing a claim for recovery of uninsured losses arising from a non-fault road traffic accident. This policy covers for a range of common household legal issues that the policyholder may wish to cover but it does not provide legal assistance for matters relating to a motor vehicle so their motor legal cover would still be relevant.
In the event of a claim, the policy covers for Lexelle to appoint a solicitor, counsel, claims handler, mediator or other qualified professional to represent the policyholder. Should the policyholder wish to select their own family solicitor this will require prior written approval by Lexelle and should not be appointed without first seeking approval.