Legal Insurance in Germany: how it works and why you need it!

One of the ways you can protect yourself through liability of legal woes is through Legal Insurance, known as ‘Rechtsschutzversicherung’. In this day and age, with the instability of the market and layoffs becoming more commonplace, having legal insurance cannot only alleviate the financial burden of a lawsuit, it can also provide a greater flexibility in pursuing action.

How much does it cost? How Does it Work?

Obtaining legal insurance is easy to do, and generally a low monthly premium (starting as low as 15 euros a month). The “waiting period” can vary depending on the coverage you purchase, meaning you may need to have it for a while before you can use it. This is why it’s important to have it early on, before you have a problem or may need to utilize it.

Legal insurance and how it covers you varies also on the type of coverage you’re seeking. At minimum, they are available to you when you are fighting for yourself or defending yourself. Perhaps your landlord is trying to evict you illegally from your apartment. In this case, you would be able to use your insurance to find a lawyer to prevent this from happening. However, you might not be able to use it when seeking a lawyer to help you look over real estate contracts before making a purchase. Each policy is different, you need to look over the terms to find a plan that fits your needs.

Will all my fees be covered?

Again, this is dependent on the policy and company you choose. Like most insurances, there can be a general copay associated with it, and this can be dependent on how many times you have needed to use it. For example: if you sue your employer for wrongful termination, the co-pay might be 100 euros. But if you then have to pursue another lawsuit, the co-pay for that second lawsuit might be an additional 500 euros. These co-pays might be different or nonexistent based on the insurance provider and coverage you have opted for.

These fees are still likely far lower than the costs you would incur out of pocket, and provides a general sense of security that eases the litigation process. Though we cannot state the fees for all lawsuits, at least for labor law, they are based on how much you are earning; the more you earn, the higher the fees for the lawyer. You can read more about the breakdown of legal fees here.

Okay, this seems like a good idea. What now?

This is great news! We strongly advise that any person living and working in Germany does this, to learn more about some providers in Germany - you can head here. Note: if you’re looking for labor law coverage, you need to be sure ‘Berufs-Rechtsschutz’ coverage is stated in the policy.