Personal Legal Insurance Cancellations

Hello,

We've received our second termination from our personal legal insurance company, Orion because we've used their services too much. This happened with the first company, Dextra.

What is the point of having legal insurance if you can't use it?

Are there specific requirements listed which cap the usage by company?  If so, what are those defined as?

What are the alternatives, apart from retaining a lawyer to handle issues, to asking questions, legal positions and taking action when required?

For most kinds of insurance in Switzerland, the contractual terms and conditions allow either party to cancel the contract after an insurance claim is filed and settled. There are certain exceptions to this rule, which primarily apply to health insurance.

In the case of legal insurance, this means that after the insurance benefits for a legal case have been paid out to you as the insured person, the insurance company can choose to end the contract at its discretion.

There is no general rule, as insurance companies are free to decide on a case-by-case basis. However, insurance providers are more likely to terminate a contract in these cases:

• The insured person makes numerous small claims that result in a high administrative expenses.
• The insured person makes one or more very large claims.

While there is never a guarantee that your policy will not be terminated after a claim is settled, insurance companies are less likely to end your contract if you only claim on your legal insurance very occasionally and make relatively small claims.

It can be worth "saving" your legal insurance for the risk of a very expensive court case, while covering small legal costs yourself.