Legal Costs Insurance (Rechtsschutzversicherung)
Although legal costs insurance is regarded as one of the less important insurances, its significance is growing as both the frequency and costs of litigation are increasing. Personal injury claims, employment problems and disputes with neighbours are regarded as areas with greatest risk of potential legal dispute. The purpose of the legal costs insurance is to cover the insured for the cost of employing solicitors, barristers and expert witnesses and providing financial support to meet legal costs awarded against the insured persons (i.e. the policyholder and members of his or her household). The annual contribution ranges from 240 to 370 Euros and very much depends on the sum insured and the amount retained.