Legal insurance covers unforeseen legal expenses but excludes pre-existing or ongoing legal disputes known before obtaining coverage. A pre-existing issue includes any legal dispute or proceedings known or pending prior to the policy start date.
Policyholders should review exclusions carefully as coverage for prior issues is not provided even after waiting periods are completed.
What does legal insurance cover and exclude regarding legal disputes?
Legal insurance covers unforeseen legal expenses for potential future disputes. However, it does not cover legal issues that existed or were ongoing before obtaining the insurance policy.
How is a pre-existing or ongoing legal issue defined in legal insurance?
A pre-existing or ongoing legal issue is any legal dispute or potential dispute that a person knew about before purchasing the legal insurance policy. This includes any ongoing or pending legal proceedings or disputes the person is aware of but has not yet acted upon legally.
Why are pre-existing or ongoing legal issues excluded from legal insurance coverage?
Pre-existing or ongoing legal issues are excluded because legal insurance is designed to cover unforeseen future events. Insurance providers do not cover disputes already known or underway at the time coverage begins.
How can I determine if my legal issue is pre-existing?
If you knew about a legal dispute or potential dispute before starting your legal insurance policy, that issue is considered pre-existing. For example, if you already had a dispute with an employer or landlord before purchasing insurance, this issue is excluded from coverage.
What should I do if I have a pre-existing or ongoing legal issue?
If you have a pre-existing or ongoing legal issue, you may need to pay legal expenses out of pocket or seek other types of legal protection, as these issues are excluded from legal insurance coverage. It is important to carefully review your policy terms and conditions to understand these exclusions.