The importance of LEI - COVID-19
Why do I need commercial legal expenses? – Covid-19
Employment
- Increase in redundancies / Unfair dismissal claims - 4.5% unemployment rate
- Average hourly rate of employment solicitor £210 per hour (£300 London) – unable to recover costs!
- No quick solution – 18 month delay for tribunal - 50,000 case backlog
Increase in Contract & Debt Recovery claims.
- Increase in unpaid debts
- Use of online legal documents to resolve issues
Access to legal advice, PR experts, telephone counselling & legal documents
- 360% increase in redundancy calls
- Increase in mental health problems
- Adverse publicity following covid-19
The legal expenses market
- Reduced EPL & Legal expenses capacity
- LEI for larger clients – Price for the risk
- ARAG EPL offering - sensible approach
- Access to key decision makers
ARAG claims
- Access to independent solicitors
- No advice precedent
- Enhanced SLA’s
- Increased use of mediation
Changes to residential legislation - protecting tenants
- 6 months’ notice for section 8 & 21 notices
- Court delays – No evictions when in national / local lockdown
- Courts will expect landlords and tenants to communicate - Access to ongoing support –
- More complex process
Rent guarantee
- Policy sales currently suspended
- Limit of indemnity claims
- Conduct issues - no desire to offer policies with Covid-19 exclusion