- Legal expenses insurance covers legal expenses, lawyers' fees and other costs associated with legal proceedings.
- There are private, traffic and corporate legal protections
- Annual premiums range from CHF 130 to CHF 230.
What is legal protection insurance in Switzerland?
Legal protection insurance is designed to protect policyholders in the event of litigation. It covers court costs, lawyers' fees, mediation fees and other costs associated with legal proceedings.
So, when disagreements cannot be resolved amicably, this coverage becomes a solution for asserting your rights without incurring heavy financial burdens.
Why take out legal expenses insurance?
Disputes can arise unforeseen in everyday life. Les conflits au travail, les désaccords avec un vendeur ou un bailleur, ou encore les problèmes de circulation sont des exemples fréquents. Lorsqu’un différend dégénère et que la négociation ne suffit plus, agir en justice peut être coûteux, aussi bien financièrement que psychologiquement.
Examples of common situations
- Labour disputes : An employee threatened with dismissal after expressing dissatisfaction with his or her working conditions can benefit from legal advice and coverage of the costs of legal action.
- Family disputes : In the event of inheritance-related disputes, legal protection insurance helps to find solutions while covering the costs of proceedings.
- Disagreements with a landlord: A landlord may demand unjustifiably costly repairs at the end of a lease. Insurance protects the tenant in the event of a dispute over these demands.
Types of legal protection insurance
Insurers in Switzerland offer three main types of legal protection:
- Private legal protection : Covers disputes relating to everyday life, such as purchase contract disputes, rental problems or neighbor disputes.
- Traffic legal protection : Designed for drivers, it intervenes in driving-related disputes, such as road accidents or disagreements with leasing companies.
- Corporate legal protection : Intended for businesses, this insurance covers legal expenses related to professional activity.
Insurance benefits and guarantees
Legal protection insurance offers comprehensive support, including :
- Legal advice : Access to legal advice to help you better understand your rights and the steps to take.
- Payment of legal fees : The insurance covers the lawyers' fees required to defend or attack in a dispute.
- Legal fees : All costs associated with legal proceedings, including legal fees and costs paid to the opposing party.
- Mediation fees : Encourage out-of-court settlements through the intervention of a mediator.
- Expert fees : Coverage of appraisal costs during an inspection.
Insurance limits
It is essential to note that the subject of the dispute is not covered by the insurance. For example, if you are claiming damages, the amount claimed will not be reimbursed, although the costs of the proceedings will be.
Territorial validity and exclusions
In general, legal protection insurance in Switzerland is valid for disputes where the competent court is in Switzerland or Liechtenstein. Some policies also provide cover for disputes abroad, but often on a limited basis.
Each insurer's CGA (Conditions Générales d'Assurance) details the cases covered and the maximum amounts guaranteed. Les litiges internationaux peuvent impliquer des règles particulières et une couverture réduite.
Premiums: how much does coverage cost?
Premiums for legal expenses insurance vary according to the coverage chosen. On average :
- Individual private legal protection : Around CHF 200 per year.
- Private family legal protection : Around CHF 230 per year.
- Traffic legal protection: Around CHF 130 per year.
Conclusion
Many people underestimate the cost and complexity of legal proceedings. Even simple cases can involve substantial costs. Legal protection insurance relieves policyholders of the financial pressure and administrative hassle. It allows them to concentrate on defending their rights, with the help of experts.
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