Disagreements can arise, whether with your employer, neighbour or even your family. If these disagreements escalate, you may find yourself needing to consult with a lawyer. Legal insurance (rechtsbijstandverzekering) is a type of insurance in the Netherlands that covers your legal costs. Unlike health insurance, it is not compulsory to have legal insurance in the Netherlands, but it will give you peace of mind, as legal costs can quickly mount up.
Best legal insurance in the Netherlands for expats
The following expat-friendly insurance companies offer legal insurance in the Netherlands:
What is legal insurance (rechtsbijstandverzekering)?
A legal dispute can happen to anyone. When you have legal insurance (rechtsbijstandverzekering), a form of private insurance, you are assured of legal help and advice when you need it. Perhaps you are having a disagreement with your employer over your contract, a fight with your neighbour over a high fence, an argument with your landlord over your rental contract, or there is a problem with the house you bought. In these stressful situations, you may need the assistance of a legal expert.
Not all people will qualify for free or low-cost legal help via a pro bono lawyer or Het Juridisch Loket, so enlisting the help of a legal expert may be costly depending on your situation. In this case, legal insurance will cover some, if not all, of your costs and make sure you don’t break the bank.
What does legal expenses insurance cover?
Insurance companies in the Netherlands offer different types of legal insurance coverage. Most offer a basic package alongside optional add-ons, allowing you to tailor your legal insurance policy to your personal needs.
These optional add-ons could include:
- Traffic: If you cause damage or an accident while walking, cycling, driving or sailing.
- Consumer: If you have a conflict regarding the purchase of products and services.
- Housing: If you have a dispute with a neighbour over noise disturbances or property boundaries, or with the government over building permits, or similar.
- Medical: If you receive an incorrect medical treatment.
- Family: If you require mediation during divorce proceedings.
- Work and income: If you receive incorrect wages or holiday allowances, or want to pursue a complaint about your work contract, or dismissal.
- Pensions/social security: If you want to resolve a conflict relating to your benefits or pension.
- Fiscal: If you are involved in a conflict relating to the sale and management of bonds and savings.
As insurance companies offer different packages, make sure you read through the policy terms and conditions to understand exactly what is covered and what is not. Additional insurance add-ons may focus on legal issues concerning your work, purchases or family, for instance. Most insurers will allow you to change insurance policy add-ons whenever you need.
What is not covered by legal protection insurance?
Generally, your legal insurance will not cover legal disputes that you could have seen coming or that were already happening when you took out the insurance. Conflicts that arose because you broke the law on purpose are also not covered.
In addition, private legal insurance will not cover costs related to your business activities, for instance if you are a freelancer or own your own business.
Cost of legal insurance in the Netherlands
The cost of legal insurance in the Netherlands depends on a number of factors. For one, it depends on the type of (basic) package you choose and how many policy add-ons you choose. Naturally, the more extensive the insurance, the higher the premium. Some companies also offer a deductible (eigen risico). The higher the deductible, the lower your premium.
The composition of your family also influences the price. Generally, legal insurance is cheaper if you are single instead of having more family members.
To give you an idea of the cost, basic legal insurance packages are available from around 6 euros per year, while extensive packages cost upwards of 250 euros per year.
Using your legal insurance
In the event of a legal conflict, or if you would simply like more information, you can generally contact your insurance company via phone, email or online via the internet. Some companies even offer 24/7 assistance.
Your insurance company will assign a legal expert to your case. If specialist knowledge is required, the issue may be outsourced. Then you will have two options: either to choose a lawyer yourself or arrange one via the insurance company. Your costs will generally be fully reimbursed if you go through the company, while there may be a deductible if you choose your own lawyer.
Please note that some insurance companies have a waiting period of a few months after taking out your insurance before you can contact them for legal advice or assistance. Plus, some insurance companies apply a minimum threshold amount to receive legal assistance.
How to cancel your legal insurance
All insurance companies that belong to the Association of Insurers (Verbond van Verzekeraars) in the Netherlands have agreed to use one scheme regarding the cancellation of legal insurance: after one year, you can cancel the insurance at any time. You must observe a notice period of one month.