Commercial Legal Protection SchemeProduct Brochure and Key Facts Summary

LEGAL PROTECTION GROUP LIMITED

Why do you need Commercial Legal Protection?Legal disputes can be costly and difficult to understand and many people are put off from protecting their legal rights due to the significant financial risk and uncertainty of the outcome. If you lose a case then you may have to pay the other side’s costs as well as your own solicitor’s fees which could run into thousands of pounds.

The solution is Commercial Legal Protection from Legal Protection Group which can cover the legal costs involved in pursuing or defending claims which commonly arise from your day-to-day business activities.

Commercial Legal Protection covers up to £100,000 in legal costs and includes the appointment of a solicitor, barrister or accountant, costs of expert witnesses and court fees. The other side’s costs are also covered if you are ordered to pay them by a civil court.

What do we cover?• Employment disputes and compensation awards

• Breach of restrictive covenant

• Defence of legal rights

• Protecting your property

• Tax investigations and disputes

• Personal injury

• Jury service and witness expenses

• Statutory licence appeal

• Contract disputes

• Recovery of undisputed debts

• Access to 24-hour telephone helplines

COMMERCIAL LEGAL PROTECTION

Running a business can be very demanding even without having the misfortune of being involved in a legal problem. You may not have the financial means to pay the costs of a solicitor to help pursue or defend your legal rights and as disputes can be time consuming, they can provide an unwanted distraction from you getting on with your day-to-day business activities.

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LEGAL PROTECTION GROUP

We are a specialist provider of legal expenses insurance, legal services and emergency assistance products.

Legal Protection Group Limited was formed by a team of well-known legal protection insurance professionals with a wealth of knowledge and experience within the industry.

Our largest shareholder is Eldon Insurance Services Limited. Eldon has grown into a market- leading claims operation with diverse teams of dedicated insurance professionals leading the way in claims excellence and cutting edge technology.

Legal Protection Group Limited provides a wide range of products, with innovative features which are specifically designed to avoid some of the common challenges associated with legal protection insurance.

We are absolutely focused upon providing a first class product and claims service. Our management structure means that our clients will always be able to talk to a decision maker and as we are responsible for designing, pricing and servicing our insurance products, we can provide quick and effective decisions on all types of enquiry.

Our products are underwritten by International Insurance Company of Hannover SE (Inter Hannover), rated “AA-” (very strong) by Standard and Poor’s and “A+” (superior) by A. M. Best.

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Employers are faced with a raft of employment legislation which they must keep up with to ensure that their employees’ rights in the workplace are correctly observed. Despite best efforts, disputes in the workplace do happen and a disagreement between you and your employee could end up being heard at an employment tribunal where you will usually have to pay your own costs, even if you win the case.

If you lose, you may be faced with an order to pay awards of compensation, which are unlimited if you are adjudged to have discriminated against your employee.

We will pay legal costs to defend you in a range of employment disputes and will also pay employment

tribunal application fees and compensation awarded against you, or sums agreed by us to settle a dispute.

Typical disputes we can help with include:

• A former employee is claiming unfair dismissal

• You are in dispute with an employee over maternity pay

• You are alleged to have discriminated against an employee due to their age, race, gender or disability

• Your employee claims constructive dismissal by alleging that you tried to change the terms of their contract making it impossible for them to continue working in the same role

During the course of their employment, employees will acquire confidential information and knowledge on business interests as well as building up relationships with key clients. If an employee leaves your employment for a competitor, there is the risk that they will use that knowledge to gain a competitive edge over your business.

Employers may insert a restrictive covenant into a key employee’s contract which restricts their post-employment activities for a limited period in order to protect their business interests. If an employee has breached a restrictive covenant, we can help you obtain a remedy, such as an injunction to stop them from causing further disruption.

Typical disputes we can help with include:

• A former sales director has taken up a similar role with a competitor and has been contacting your customers with the intention of taking their business from you

• A former operations manager has taken up a similar role with a competitor and has made an approach to a key employee offering them a role within that competing business

Employment Disputes and Compensation Awards

Breach of Restrictive Covenant

THE COVER

All businesses and their staff must operate within the law and you must ensure that your business premises are a safe environment to work in. There are occasions when something may go wrong during the course of your work activities which could result in a restriction on trading, investigation by a prosecuting body or regulatory authority, criminal prosecution or a heavy fine.

Typical claims we can help with include:

• An employee is injured whilst using a poorly maintained cutting device which results in a Health and Safety investigation and prosecution against you

• Your employee is accused of serving alcohol to a minor which results in a Trading Standards investigation and a threat to shut down your business

• You have a laptop containing the personal data of your customers stolen which leads to an investigation by the Information Commissioner’s Office and a financial penalty being imposed

• Your business is issued with a Statutory Notice by the local authority to carry out repairs to your business premises which you believe are not warranted and you wish to appeal against this notice

Defence of Legal Rights

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THE COVER

Paying the right amount of tax is a necessity but sometimes HMRC may take a closer look at your tax returns and claim that you owe more tax than you think is due.

If HMRC carry out an investigation into your tax affairs, we will appoint an accountant to negotiate and represent you in dealings with HMRC.

Typical investigations or disputes we can help with include:

• HMRC have issued you with a written notice of enquiry into your business accounts after finding a financial irregularity in your tax return

• HMRC have disputed the amount of PAYE declared alleging that you have used the wrong PAYE code, resulting in an underpayment

• Following a routine inspection, HMRC have taken a different view on the amount of VAT liability on a series of transactions you have made

Property law can be very complex and disputes can take a long time to settle. You could also lose out financially if you are not able to use your business premises due to damage caused by another party or somebody trespassing on your property.

Disputes with neighbouring businesses can be particularly harmful and destroy previously good relationships to such an extent that you may need to move your business elsewhere, affecting trade which has been built up over many years.

Typical disputes we can help with include:

• A leaking roof from a neighbouring business has caused damage to your office equipment

• A neighbouring business is refusing to let you use a right of way which prevents your delivery vehicles from gaining access to stock held in your warehouse

• A former caretaker is refusing to hand you the keys to premises leased to them as part of their employment with you and you now wish to seek repossession of those premises

Tax Investigations and Disputes

Protecting Your Property

Whilst people have a duty of care to not do anything that could result in harm to others, accidents do happen and if it is a result of someone else’s negligence, you have the right to bring a claim against the person or organisation responsible.

If you, your employees or members of their family suffer death or bodily injury as a result of another person’s negligence, we will pursue a claim against that person to obtain compensation.

Typical claims we can help with include:

• Whilst delivering goods to a shop, your employee trips over a hazard left at the main entrance

• Your employee is attending a business meeting at a customer’s premises when a faulty office chair collapses resulting in a back injury

• Your employee suffers a fractured foot after being hit by a forklift truck whilst visiting a supplier’s premises

Personal Injury

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THE COVER

Businesses enter into agreements to buy or supply goods or services every day and there is always the risk of something going wrong with you being left with defective goods or sub-standard work and a large legal bill to put things right. Even minor disputes could escalate and damage relationships or threaten the survival of your business.

If you are involved in a disagreement with another party, we will help you to resolve that dispute by negotiating the best possible outcome.

Typical disputes we can help with include:

• A supplier fails to supply you with goods at the agreed intervals, breaching the agreement you have in place with them

• You have purchased a defective office printer and the supplier is refusing to repair it or let you have a replacement

• A customer is claiming you did not manufacture a good to the agreed specification and is refusing to pay for the item

Contract Disputes

Having an efficient credit control function helps to minimise the risk of an overdue payment turning into a bad debt. Not all customers pay on time and unpaid invoices not only affect the cash flow of your business, they also create extra work for you in having to chase customers for outstanding payments.

If you have exhausted your normal credit control procedures and are still unable to recover an undisputed debt, we will help to resolve the issue by negotiating a recovery of that debt and any interest due on your behalf.

Recovery of Undisputed Debts

More than 400,000 people are selected for jury service each year and in performing this civic duty, they could face the prospect of being off work for up to two weeks, sometimes longer.

You or your employees may also have to give evidence in a court or tribunal as a witness for a claim which we are covering under this insurance.

Where lost salary or wages are not able to be claimed back from a court, tribunal or other party, including you, we will pay these sums.

Many businesses need to hold a mandatory licence in order to conduct their business activities. If there is a danger of that licence being withdrawn or its terms altered, this could seriously hamper your business and even result in it being shut down.

If you face the threat of your licence being withdrawn or altered, we will pay the costs incurred in appealing to the relevant licensing authority.

Jury Service and Witness Expenses

Statutory Licence Appeal

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HELPLINE SERVICES

This service provides you with 24-hour access to qualified advisers who can provide you with advice on issues affecting your business under UK, Isle of Man and Channel Islands law including:

• Employee grievances and statutory rights

• Dismissing staff and redundancy programmes

• Terms and conditions of employment contracts

• Customer rights when buying goods or services

• Health and safety law

• General enquiries on business taxation law

This service provides your employees with 24-hour access to qualified counsellors who can give confidential guidance on matters causing stress and

anxiety such as financial problems, family issues or bereavement.

Commercial Legal and Tax Advice Helpline

Commercial Legal Protection not only provides you with assistance if you have a claim, it also gives you access to telephone helpline services which

provide advice and guidance on a wide range of issues affecting your day-to-day business activities.

Counselling Helpline

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Type of insurance

Commercial Legal Protection is a legal expenses insurance contract designed to provide advice and representation for your business and, for some insured incidents, your employees, in legal disputes arising out of your business activities.

Who provides this insurance

Legal Protection Group Limited, authorised under a binding authority agreement to administer this insurance on behalf of the insurer, International Insurance Company of Hannover SE.

How long does the cover last

Unless otherwise agreed, this insurance will remain in force for 12 months from the date of commencement and for any period for which you renew this insurance (as long as the premium is paid).

Territorial limit

a) For insured incidents 4 a) – Pre-charge, 4 b) – Criminal prosecutions, 7 – Personal Injury, 10 – Contract Disputes and 11 – Recovery of Undisputed Debts – the European Union, the Isle of Man, the Channel Islands, Norway and Switzerland.

b) For all other insured incidents – the United Kingdom of Great Britain and Northern Ireland, the Isle of Man and the Channel Islands.

Choice of law This insurance is governed by the laws applying to the part of the United Kingdom of Great Britain and Northern Ireland, the Isle of Man or the Channel Islands where your business is registered and located.

Features and benefits Significant exclusions or limitations

The insurer will pay legal costs and expenses and where applicable, awards of compensation, up to the limit of indemnity, for the insured incidents listed below.

The most the insurer will pay for any one insured incident arising at the same time or from the same originating cause is £100,000.

The most the insurer will pay for all employment compensation awards is no more than £1,000,000 in total for any one period of insurance.

We will not cover any event or dispute you were aware of before this insurance started.

The insurer will not pay any costs incurred before we have accepted your claim or costs which we have not authorised in advance.

There must always be more than a 50% chance that your claim will have a successful outcome.

We will select an appointed adviser of our choice to deal with your claim.

Where it is necessary to issue legal proceedings or if a conflict of interest arises, you are free to nominate a legal representative of your choice (other than claims where the insurer is liable to pay an award of compensation).

Your chosen legal representative must agree to our standard adviser’s terms of appointment and the most the insurer will pay is no more than the amount that would have been paid to our own choice of appointed adviser.

POLICY SUMMARY AND OTHER IMPORTANT INFORMATION

This is a summary of the cover provided under Commercial Legal Protection. It does not contain full details of policy terms, exclusions and conditions. For full details of this insurance please refer to the policy wording, a copy of which is available to you on request.

Please note: the information which follows is a description of the standard covers provided by this insurance which can change due to selection of covers and any endorsements which may be applied.

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Features and benefits Significant exclusions or limitations

Insured incident 1 – Employment Disputes

Defending a dispute with a current, former, prospective or alleged employee regarding a contract of employment or a breach of employment legislation.

Representation throughout any internal disciplinary or grievance procedures.

Disputes relating to redundancy matters which arise within the first 180 days of the date this insurance started (unless continuous equivalent cover is in place).

Insured incident 2 – Employment Compensation Awards

Where we have accepted your claim under Insured incident 1 Employment Disputes, the insurer will pay:

a) compensation awarded against you by a court or tribunal; or

b) a reasonable and proportional sum we agree to settle your dispute.

You must have sought and followed the advice from our legal helpline at all times in cases relating to performance and conduct, breach of statutory duty under employment legislation and redundancy matters.

Redundancy payments or monies due or payable under a contract.

Insured incident 3 – Breach of Restrictive Covenant

Pursuing a dispute with a current or former employee following their breach of an express restrictive covenant incorporated into their contract of employment with you.

The restrictive covenant must have been designed to reasonably and fairly protect your legitimate business interests and must not contain any restrictions for periods longer than 12 months.

Insured incident 4 – Defence of Legal Rights

Defending an insured person following a work-related event which leads to:

a) interview by the Police or other prosecuting authorities where suspected of committing a criminal offence;

b) prosecution in a criminal court;

c) a formal investigation or disciplinary hearing brought by a regulatory or professional body;

d) civil action for breaches under Section 13 of the Data Protection Act, including compensation.

Defending you following a work-related event which leads to:

e) civil action for wrongful arrest following an allegation of theft;

f) appeals against the imposition or terms of a Statutory Notice;

g) appeals against the refusal of the Information Commissioner to register your application.

Defending an employee following a work-related event which leads to:

h) civil action for unlawful discrimination;

i) civil action in their role as trustee of your company’s pension fund.

Cover for an insured person (other than you) is only provided at your request.

Fines, compensation, damages or penalties awarded against an insured person including any costs the insured person is ordered to pay by a criminal court.

A claim relating to an insured person driving a motor vehicle.

Insured incident 5 – Protecting Your Propertya) Pursuing or defending legal rights in disputes relating to a

legal nuisance or trespass which interferes with the use or right over land or buildings owned or occupied by you.

b) Pursuing disputes following an event which causes damage to your land or buildings or your material property.

c) Recovering possession of premises from an employee or former employee.

A contract you have entered into.

Compulsory purchase orders, repossession, planning permissions, building regulations or restrictions or controls placed on your land or buildings.

Work carried out by or on behalf of Government, local or public authorities or their contractors.

POLICY SUMMARY AND OTHER IMPORTANT INFORMATION

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Features and benefits Significant exclusions or limitationsInsured incident 6 – Tax Investigations and DisputesRepresenting you in dealings with HMRC in:

a) an investigation into your income tax or corporation tax return;

b) a dispute over Employers’ Compliance;

c) a dispute over your VAT affairs.

All returns must be complete and correct and submitted within specified deadlines.

Returns or accounts which contain negligent misstatements or omissions.

Investigations into alleged criminal activity, fraud or dishonesty.

Insured incident 7 – Personal InjuryPursuing claims following a sudden and specific event which causes death or bodily injury to an insured person or family members who permanently live with them.

Illness or injury which develops gradually over a period of time or is not caused by a sudden and specific event.

Insured incident 8 – Jury Service and Witness ExpensesPayment of an insured person’s lost salary or wages for the time taken off work to perform jury service or to attend a court or tribunal as a witness for a claim covered under this insurance.

Any claim where an insured person cannot provide evidence of the extent of their lost salary or wages.

Insured incident 9 – Statutory Licence AppealAppealing to a statutory or regulatory authority, court or tribunal following a decision to suspend, cancel, alter or refuse to renew your licence to trade.

Applications for an original or renewal of a licence.

Ownership, driving or use of a motor vehicle.

Insured incident 10 – Contract DisputesPursuing or defending disputes arising from a contract entered into for the purchase, sale, hire, hire purchase, lease or provision of goods or services.

The amount in dispute must be more than £200 (including VAT).

Sale or purchase of land or buildings or a lease, tenancy or licence to occupy land or buildings.

Computer hardware, software, systems or services supplied by you or custom-made to your specific requirements.

Insured incident 11 – Recovery of Undisputed DebtsPursuing claims to recover money and interest due to you under a contract entered into for the sale, hiring or leasing out or provision of goods or services, where the other party has not contested liability.

The debt must be more than £200 (including VAT).

All normal credit control procedures must be exhausted.

Sale or purchase of land or buildings or a lease, tenancy or licence to occupy land or buildings.

Computer hardware, software, systems or services supplied by you.

Helpline ServicesCommercial Legal and Tax Advice

Provides confidential telephone legal advice on commercial legal or tax matters under UK, Isle of Man or Channel Islands law.

Helplines are available 24-hours a day but in some cases we may need to call you back.

Counselling

Provides confidential telephone counselling to your employees or members of their family on matters causing distress.

Any costs incurred in using onward referral services are not covered.

POLICY SUMMARY AND OTHER IMPORTANT INFORMATION

Important note: This policy excludes certain situations and circumstances and it is important that you read the policy wording to ensure you are familiar with its terms and conditions and that it meets your demands and needs. If you have any queries over the suitability of this cover and its terms and conditions, then please contact your insurance adviser.

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This insurance is underwritten by International Insurance Company of Hannover SE who are registered in Germany, registration number HRB 211924.

Registered Office: Roderbruchstraße 26, 30655 Hannover, Germany, acting through its UK branch whose office is located at: 10 Fenchurch Street, London EC3M 3BE, United Kingdom.

Authorised by the Bundesanstalt für Finanzdienstleistung-aufsicht and authorised and subject to limited regulation by the Financial Conduct Authority (FCA No. 659331).

The insurer is covered by the Financial Services Compensation Scheme (FSCS) and you may be entitled to compensation from the scheme if they cannot meet their obligations. This will depend on the circumstances of the claim.

Further information about the compensation scheme arrangements can be found on the FSCS website at www.fscs.org.uk

We will at all times endeavour to provide you with a high level of service. However, if things go wrong and you are not happy with our standard of service, please let us know:

Email: complaints@legalprotectiongroup.co.uk

Phone: 0333 700 1040

Post: Customer Service Department, Legal Protection Group Limited, Lysander House, Catbrain Lane, Cribbs Causeway, Bristol BS10 7TQ

If we are not able to resolve your complaint to your satisfaction, then you can contact the Financial Ombudsman Service as long as you are eligible to complain:

Email: complaint.info@financial-ombudsman.org.uk

Phone: 0800 023 4567 (free from a landline) or 0300 123 9123 (free from some mobile phones)

Post: Financial Ombudsman Service, Exchange Tower, London E14 9SR

You can also visit their website www.financial-ombudsman.org.uk and follow the guidelines on how to complain.

Using the Financial Ombudsman Service does not affect your legal rights.

Full details of the complaints process can be found in the policy wording.

The insurer

Financial Services Compensation Scheme

What to do if you have a complaint

You can cancel this insurance within 14 days of taking it out, or within 14 days of receiving your policy documents, whichever is later. You will be entitled to a full refund of premium paid as long as no claims have been made. At all other times you or we can cancel this insurance subject to 7 days’ notice. You will be entitled to a pro-rata refund as long as no claims have been made in the current period of insurance.

If there is evidence of a fraudulent or exaggerated claim, we can cancel this insurance from the date of the alleged claim and can recover any sums paid in respect of that fraudulent or exaggerated claim. No refund of premium will be payable.

Full details of cancellation rights can be found in the policy wording.

If you are aware of any circumstances which could give rise to a claim under this insurance, you must contact our claims reporting line shown in your policy wording as soon as possible. You may need to complete a claim form and provide additional information in support of your claim.

This is a claims made insurance which means that claims must be notified to us during your period of insurance or within 14 days after the expiry date if this insurance is not renewed.

Under no circumstances should you instruct your own lawyer or legal representative or incur any costs before we have accepted a claim as the insurer will not pay any costs incurred without our agreement.

Full details of the claims procedure can be found in the policy wording.

Cancellation rights

What to do if you need to make a claim

POLICY SUMMARY AND OTHER IMPORTANT INFORMATION

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LPG0009/0916

LEGAL PROTECTION GROUP LIMITEDHead and Registered Office:Lysander House, Catbrain Lane, Cribbs Causeway, Bristol BS10 7TQRegistered in England and Wales, company number 10096688

www.legalprotectiongroup.co.uk Twitter: @LegalProGroup

Legal Protection Group Limited (firm reference number 749446) is an appointed representative of Eldon Insurance Services Limited (firm reference number 477112). Eldon Insurance Services Limited is authorised and regulated by the Financial Conduct Authority.