What does legal cover in South Africa include?
Legal aid is only available to those who earn less than R5500 per month after tax. Therefore, many South Africans take out legal cover – an insurance product that covers the expenses involved in case they are involved in a legal dispute. So what does legal cover in South Africa include?
In South Africa, the legal cover includes the following:
Policyholders can contact their insurance company for legal advice 24 hours a day. This service is available face-to-face and on the phone (some may also offer advice via email and fax). This advice is given by a legal advisor or lawyer regarding civil, criminal or labour issues. Many do not offer cover or advice regarding divorce matters.
Policyholders will have costs covered to be represented by an attorney in a court of law (limited to certain claims and a certain number of cases per year). Divorce is usually excluded from this cover. Usually, you will use the attorney provided by the legal insurer or you can opt to use your own attorney and the insurer will cover a portion of their fees. The attorney’s costs will include time spent understanding and building the case as well as time in court. An attorney may decide not to take a case on after perusing the details.
The legal cover includes private negotiations, which may include contracts around the sale or purchase of a business or home. These contracts often require the skills of an attorney for successful negotiation.
Business Legal Cover – What does legal cover in South Africa include
Legal cover for your business generally refers to liability insurance which covers claims such as injury, damages or death. Doctors and lawyers particularly tend to have malpractice cover and financial institutions generally insure against errors or omissions. However, there is legal cover for almost every profession (even restaurants can have insurance for liquor liability) and these are in three main categories:
This is legal cover for employers to cover claims from employees, such as injury from performing the job. This insurance will cover the cost of legal proceedings (unless the employer is guilty). To avoid these claims, companies must comply with safety regulations and must supply employees with safety equipment, provide appropriate safety training and maintain their equipment and premises. This insurance does not include cover for claims of unfair dismissal.
This is for claims from the general public (or anyone not employed by your business). If a client suffered injury or damages on your property, then they have the right to claim and legal proceedings will determine if the business was at fault and if they could have or should have prevented the loss.
Personal Liability – What does legal cover in South Africa include
This is for claims against you in your personal capacity. If someone suffers a loss or injury on your property, they can claim damages against you personally. This often has coverage for a home insurance policies.
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