Legal Expenses insurance covers the cost of pursuing legal action or defending your business against legal action where this isn’t covered by your liability insurance; for example, in an employment tribunal. The insurer will pay solicitors’, barristers’, accountants and expert witnesses’ fees and expenses, as well as court costs and opponents’ costs if you are ordered to pay them in a civil court.
Legal expenses insurers often provide advice and a legal helpline within the policy coverage.
Defending the costs of your company’s legal rights should not be overlooked as there is a considerable exposure to all sorts of issues from a variety of areas. There is also an ever-increasing amount of legislation that changes on a regular basis and it is difficult for most businesses to retain the expertise to deal with the problems in house.
Common examples of where actions might be necessary include contract disputes with tradesmen, debt recovery, VAT or tax investigations, employment disputes (such as constructive dismissal) and property disputes.
Commercial Legal Expenses can occasionally be included as an add-on section to commercial risk policies such as Employers and Public Liability, or arranged on a stand-alone basis.
We will review your demands and needs and consider an arrangement most suitable to you. Many covers will come as standard under most Legal Expenses packages, whereas certain other covers can be included as options. For instance, employment legal advice and representation will be standard under most policies, whereas employment awards cover will be optional.
Contract disputes cover and debt recovery are usually optional covers. Naturally the premiums will vary according to the extent of options required.