Norwich Union Increases Commercial Legal Expenses Coverage Limits

August 8, 2005

Norwich Union, the main U.K. operating company of the Aviva Group, announced that it has reviewed its legal expenses cover provided under shop and salon, office and surgery, pub restaurant and hotel, and self-employed policies.

As a result the company has increased coverage five-fold in its indemnity limits from 100,000 pounds ($178,600) to 500,000 pounds ($893,000). Matt Frost, product manager at Norwich Union explained: “The number of employment tribunals has started to rise again and there has also been a noticeable increase in the number of employees bringing multiple claims. This has resulted in longer, more complex cases, which are therefore more expensive to defend.”

Norwich said it had found that “SME’s [small and medium-sized enterprises] are concerned about compliance with new legislation, particularly employment related, and cash-flow problems caused by slow payment from customers and suppliers.”

The company’s package policies “provide commercial legal protection as standard, including comprehensive employment cover, contract disputes and debt recovery. Policyholders also receive access to a legal and tax helpline and an online human resources manual, which provides advice and template letters to help on a wide range of employment related matters,” the announcement continued. “This cover, along with the new limit of indemnity, offers policyholders an increased level of protection as well as access to advice and information when they need it.”

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