Defend and PursueThe primary trigger for Professional Indemnity is a breach of professional duty that results in a financial loss to a third party, but CLP does not need to be triggered by allegations against the insured in order to respond. Five of the seven Heads of Cover included within CLP afford legal costs to pursue a dispute with a third party, such as Contractual Disputes, Debt Recovery or Restrictive Covenants (employees breaching non-compete). Designed to Complement, Not ReplaceLegal expenses insurance complements other classes of insurance as it lowers the financial burden associated with legal disputes and provides access to legal advice (without needing to trigger the policy first) and assistance which could curb the need for full-scale litigation. Free Legal AdviceCLP allows the insured to receive targeted advice from a lawyer relating to any problem directly associated with their core business activities. Unlike PI, cover is not restricted to professional services. A discussion with the legal team does not necessarily equal a notification on the policy. Unless it’s identified that a section of cover is triggered, advice is treated as general, and the insured can make as many enquiries to safeguard their business as they wish.
For further information contact Newcastle Insurance Group