Legal expenses insurance cover is important for all businesses, regardless of size, as any business owner can find themselves at the wrong end of a claim or lawsuit, from the owner consultancy service that’s run from home to the CEO a multinational blue chip company.
Since the abolition of employment tribunal fees, there has been a major increase in how many businesses are brought to court each year regarding disputes, increasing the risk for business owners in all sectors. This makes it more important than ever to get cover, especially legal cover for small business owners - if you run a tight ship, the last thing you need is a substantial claim rocking the boat.
Even if you’re found not to be at fault, you might still need to pay legal fees. The cost of your legal liability cover will depend on your needs, industry, and business size. That said, it’s best to be fully covered than to risk expensive disputes or settlements.
What does legal insurance cover?
A key factor for any business legal protection deal is making sure it adequately meets your needs and covers all possible eventualities. As there’s an almost infinite amount of relationships, engagements and situations that a business may face, legal insurance needs to be comprehensive. While we always recommend analysing any potential contract in detail, you should ensure you legal insurance policies cover the including but not limited to:
- Employment disputes
- Contract disputes
- Compensation awards
- Debt recovery
- Business property disputes
- Bodily injury of insured persons
- Non-motor criminal prosecutions
- A range of civil legal proceedings
- Tax protection
Of course, some things on this list may be relevant to your business or, on the other hand, you may need different legal cover if you work in a niche industry. That’s why we recommend speaking to an expert broker who can help identify your legal cover needs and find the best deal.
