It has recently been reported that around 22% of people in this country have cancelled their home contents insurance in a bid to save money.
However, given the shaky nature of the economy at the moment, now is exactly the wrong time to lose this cover as in many cases the home contents insurance includes legal expenses cover, so that if an employee wishes to bring an employment claim, the legal expenses insurance would cover the cost of bringing such a claim.
The significance is that in the employment tribunal it is very rare for the successful party to be awarded costs. This means that even if you were to win your claim, you may be facing a legal bill that would significantly eat into any award made and could conceivably wipe it out all together.
My advice – don’t be too hasty to cancel this cover – it may cost you much more than you think in the long run.
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