You might think it's unnecessary to ask if your company has insurance in place. Of course you do. All the statutory insurance is in place, and that's fine.
But what about the insurance policies that are not mandatory by law, but which can prove crucial to the company's finances?
Here I am thinking in particular of legal aid insuranceAll private individuals have it automatically built into their home, house and car insurance, but this is not the case for companies. The company must take out legal expenses insurance itself as a supplement to the existing business insurance, but it is nevertheless extremely important that it is done.
Without insurance, you must cover all costs of conducting a lawsuit yourself. Legal aid insurance is therefore often crucial in assessing whether it is financially viable to conduct a lawsuit. With legal aid insurance, the costs are limited to the deductible.
Legal aid insurance covers all expenses associated with conducting a lawsuit, regardless of whether you are the one filing the lawsuit or the one being sued. These include court fees, expert statements, your own lawyer and the costs of paying legal costs to the opposing party if the case is lost. The insurance therefore covers no small sums if you become involved in a lawsuit.
The insurance has a maximum coverage. If you exceed this, you will have to pay additional expenses yourself. However, the insurance can usually cover the conduct of an entire court case, at least for the district court, but usually also for the high court. There is a deductible per case of usually DKK 5,000. If the company is VAT registered, you will have to pay the VAT on the expenses yourself, but these will be refunded again via the VAT account.
After reading this, immediately contact your insurance company or insurance broker and find out whether you already have legal expenses insurance or not. If you don't, you will get it taken out immediately. No exceptions.
When it becomes necessary to use the insurance, you must contact your lawyer. The lawyer will submit an application to the insurance company and request confirmation that the lawsuit is covered by your legal aid insurance.
Do you need legal assistance for a lawsuit? So contact us for a non-binding chat about your options.
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