CLAIMS CORNER

The following is an example of a recent Employment Pursuit claim we handled under our Family Legal Expenses Insurance (LEI) policy. This particular claim demonstrates the benefit of having an LEI policy - without this, the policyholder would have been exposed to large legal bills.

The policyholder was a Regional Managing Director at a company for 5 years before being unfairly dismissed. The reason behind the termination of his employment was due to the breakdown of relationship with the other directors, however he was given no forewarnings of this and believed he had displayed a high performance and contribution to his job role

The policyholder was also told that his 33% of the business’ shares would also be bought back by the company. Shortly after being escorted out of the building, he was invited to an emergency board meeting over the phone. The number used was that of his home phone, however due to the long commute, he didn’t make it back to answer the call and was unable to defend himself.

The policyholder submitted a claim form to us for unfair dismissal. We instructed our panel solicitor to conduct a prospects of success assessment on the case, which returned as positive and confirmed the policyholder was covered under his Family LEI policy.

After long negotiation, the case was settled at mediation and the policyholder was offered £2,000,000 in compensation, which he accepted. Legal costs amounted to £50,000, all of which were covered under the Legal Expenses Insurance policy.

Call us on 0344 770 9000