Security businesses and legal protection

BJP Insurance Brokers work with Abbey Legal to provide bespoke Security Legal Protection to protect you, your employees and your business.

Why security businesses need commercial legal expenses insurance?

Commercial litigation can be a costly reality in today’s business environment. Litigation manifests itself in a number of different ways. Our product seeks to protect you against a number of legal exposures to ensure you are protected with experience and quality.

Employment disputes

Employment claims may potentially be a result of poor employee management. Employees know their legal rights. The average number of Employment Tribunal claims over the last few years is 1 for every

200 employees (much more likely than a fire claim). Legal expenses insurance can assist in preparing an initial response and representation to a claim at an employment tribunal.

Example

The insured is a Security firm. They had an employee who had started to under-perform in his role. The insured sought advice from the insurance legal advice line on what they should/could do. The advice was to hold a formal meeting and give the employee an opportunity to improve. This did not work and so on further advice from the telephone advice line, further meetings were held with further warnings. Eventually, when the work did not improve, the insured dismissed the employee, an action which the legal advice line agreed to. The ex-employee sued for unfair dismissal and sex discrimination. The Employment Tribunal decided that while there was no sex discrimination and concluded that the dismissal was fair. The insured avoided compensation awards, however was indemnified for the Legal Expenses Insurance during their representation in court.

Tax disputes

The HMRC continue to target firms with inspectors told to bring in as much additional revenue as possible. Our legal expenses insurance will support you in a full or aspect enquiry, relating to your tax

returns, including the payment of environmental taxes. You will also have support for disputes relating to PAYE and National Insurance contributions.

Example:

The insured is a security guard in Sheffield and was subjected to a tax enquiry lasting for 6 months.

The HMRC inspector was concerned with the level of income being declared for what was mainly a cash business and suspected that income had been understated. Our consultant put up a robust defence and although the business records were not ideal our consultant was able to convince the inspector that no errors existed.

The enquiry was, therefore, brought to a relatively quick conclusion with no adjustments required and our consultant gave advice to the insured about improving the records for the future. The professional costs saved by the insured were £5k.

Property Disputes

Disputes over the physical possession of property, a tenancy agreement or damage that has been done to your property can be costly and take time to resolve. These issues mentioned can limit the rental income of your property and the condition the property is left in.

Example:

The insured was a landlord of several units on a business park. One tenant used their unit as a bathroom show room, factory and they had an office. They installed extra partitions and made other alterations on agreement that at the end of the lease, the property would be put back in the same order as at the date the tenancy commenced. The tenant decided not to renew the lease and left for alternative premises. The tenant merely left, leaving the unit unfit for any other tenant. The insured landlord sued for dilapidations. The matter was eventually resolved at a court hearing, but not efore the insured had incurred £19K of legal costs which were covered by the Legal Expenses Insurance.

Criminal prosecution defence

Failure to comply with health & safety or trading standards can lead to a criminal offence and possibly

a prosecution. Corporate manslaughter and gross negligence are also primary concerns for the directors of a business. Legal expenses can assist not only with the cost of defending a prosecution, but also guilty pleas where the punishment can be mitigated.

Example:

The insured is a Security guard whom has had an accusation of assault brought against him at a hospital in Blackpool. The security guard was accused of assaulting a patient with mental health problems who was trying to leave the grounds.  Gareth represented the security officers at police interview stage and the cases did not progress further.  Needless to say this was extremely traumatic for the individuals concerned.

Jury Service:

Insurance to pay the amount liable to pay employees when they attend on jury service. Under the policy this is limited to £100 a day and £1,000 any one claim.

Example:

The insured clients run a security firm. One of his 5 employees was called for jury service and was away from work for 2 weeks. Even though the insured did not have a legal duty to pay the employee her normal wage whilst she was attending jury service, the insured decided to pay the employee her normal wage and claimed the costs from the insurance. The insured was able to recover a total of £1,000 under his policy.

Pension Trustee Defence:

Insurance is provided to defend claims against the employer in their capacity as a trustee of a pension fund for the benefit of their employees.

Example:

The insured is a trustee of a pension scheme. He faced accusations of failure to properly perform his duties as a trustee of the pension scheme. He immediately informed his insurance of the claim. Notwithstanding attempts to clarify and resolve the issues, the matter proceeded to court. The insured’s legal costs and expenses incurred in defending the claims brought against him, was covered under his pension trustee defence policy.

Claims handling expertise

Our claims handlers are legally trained; are able to understand the nature of legal disputes and are also empowered to make decisions. They will work with you to make your experience clear and professional.

Legal advice line

Quality advice isn’t cheap. With the hourly cost of a solicitor typically in the hundreds, it’s reassuring to know that telephone legal advice on UK law is available free within the policy from the first day to the last day of cover. You will also have access to:

  • employment advice
  • tax advice
  • health & safety advice

All our clients have access to the highest standard of advice from our lawyers and barristers 24 hours a day, 365 days a year. Advice is unlimited in the length, and number of calls provided on any business legal issue.

 

elXtr

By having access to Abbey Legal’s elXtr product, provided by LHS Solicitors LLP, you will have access to the premier legal information website providing precedent documents, legal information and a

comprehensive suite of template documents on employment, health & safety and business law.

2018-11-20T12:02:12+00:00November 20th, 2018|