Legal expenses insurance (Rechtsschutzversicherung, RSV) can sometimes be helpful for clients. However, some legal expenses insurers give their customers the impression that, once cover has been confirmed, they will pay all costs incurred with the lawyer.
Unfortunately, this is often only half the truth — for example, in cases where a fee agreement is concluded, where contract negotiations are involved, or where a settlement is reached with the other party. In addition, many areas of law are often completely excluded from coverage. In these cases, your insurer will not reimburse the costs.
It is also important that you are and remain the contact person for your insurer. If the lawyer is to correspond with the RSV, that would constitute a new, separately billable engagement. However, as a matter of goodwill, my service generally includes the initial request for cost coverage and sending the invoice to the RSV — which, in the case of a cooperative insurer, is generally sufficient. However, I cannot assume the policyholder’s own duties of cooperation under the insurance contract on your behalf.
Legal expenses insurance is not a form of social insurance but is generally profit-oriented — the less it has to pay out, the more profit it makes. Unfortunately, this sometimes leads to uncooperative behaviour on the part of the insurer aimed at avoiding payment. Disputing matters with your own legal expenses insurer can then lead to major delays and cost a great deal of nerves — that is, if it doesn’t land you with an entirely new legal case and new costs on top.
If you would like your costs reimbursed by your legal expenses insurer, please clarify with them as early as possible what will be reimbursed — and under what conditions — and what will not, so that there are no unpleasant surprises regarding the costs.