Did you know that the average legal dispute in the United States costs around $50,000? That is a considerable amount that most individuals cannot afford.
Legal expenses insurance ensures you have the financial support to protect your legal rights without breaking the bank.
Legal Protection Insurance covers various legal issues, including employment, consumer rights, property, and personal injury claims.
What is legal expenses insurance?
Legal expenses insurance (LEI) covers the legal costs of a dispute, whether you are suing someone or being sued by someone. You can access legal advice and representation, and you can pay for fees such as lawyers, court, witnesses, or experts. Individuals or businesses who want to protect themselves from the risk of expensive lawsuits can find LEI useful.
LEI policies vary depending on the time of purchase and the coverage they provide. There are some common types.
Before the event (BTE) LEI: You buy a policy before any legal problem arises, which is known as Before the Event (BTE) LEI. Insurance companies usually add it as an optional extra to your home, motor, or commercial insurance policy. Your policy only covers disputes that are related to its main purpose. For example, if BTE LEI provides your home insurance policy, it may cover disputes with your neighbors, contractors, or landlords.
After the event (ATE) LEI: The event (ATE) LEI is a policy that you purchase after a legal problem has already occurred. The insurer usually charges more because they know you will need legal assistance. It specifically covers the dispute that you are involved in. For example, if you suffered an injury in an accident and wish to sue the responsible party, you can purchase an ATE LEI policy to cover your legal costs.
Stand-alone LEI: You buy a policy that is not linked to any other insurance product. It includes a wider range of disputes and areas of law, such as contract, labour, consumer, and family law. Businesses may also be covered for intellectual property and brand protection.
What does legal expenses insurance cover?
Legal expense insurance covers the following disputes:
- Employment disputes
- Personal injury disputes
- Property disputes
- Statutory License Protection
- Tax Protection
- Contracts disputes
- Criminal prosecution
- Data protection
Just imagine what would happen if you were sued for unfair disqualification. Or what if your employee believes they have suffered workplace discrimination? What happens if your company’s data leak violates a customer’s privacy?
Legal expenses coverage can protect you in all these situations.
What is not covered by Legal Protection Insurance?
Legal expenses coverage does not cover the following disputes:
- A claim that started before your policy
- Legal expenses that you have paid before your claim is accepted;
- Claims with less than 50% of win
- Policy Exclusions
How much do laywers expenses and insurance cost?
The table below shows the costs and levels of legal expenses policy purchased as an add-on to car insurance policies.
Legal expense insurance cost as an add-on to Car Insurance:
| Insurance Company | Average Premium Cost | Coverage Limit |
| Aviva | £29 | £100,000 |
| AXA | £29.99 | £100,000 |
| Esure | £31 | £100,000 |
| Saga | £30 | £100,000 |
| Churchill | £28 | £100,000 |
Legal expense insurance cost as an add on to Home Insurance:
| Insurance Company | Average Premium Cost | Coverage Limit |
| Aviva | £29.99 | £100,000 |
| AXA | £25.99 | £50,000 |
| NFU Mutual | £25.99 | £50,000 |
| Direct Line | £26.88 | £100,000 |
| Churchill | £25.76 | £100,000 |
Can I buy legal expenses insurance?
Legal expenditure insurance can be purchased alone or as a “add-on” to house or auto insurance policies. Customers are offered legal expenses insurance add-ons when purchasing an automobile insurance policy.
Does a Small Business need legal expense insurance?
There are multiple legal issues associated with running a business. A legal dispute can arise from anywhere – from a supplier, an ex-employee, or even the tax collector.
However, regardless of the size of the dispute, the costs of defending or pursuing legal concerns can soon add up.
Expenses for lawful counsel Insurance could safeguard you from unexpected costs that could harm your business.
Does business insurance cover legal expenses?
Your business liability insurance protects your company’s assets, financial obligations, legal defense, and any settlements or judgments awarded to an injured party.
Your company’s liability insurance covers these legal fees:
- Court fees
- Attorney fees
- Fees for settlement
- Judgment costs
What is motor legal expenses insurance?
Legal Protection Insurance, commonly referred to as Motor Legal Expenses Insurance, is a type of insurance that pays for the fees and expenses of going to court in the event of a motor vehicle-related dispute. This might apply to instances of:
Recovering uninsured losses: If you’re in an accident that wasn’t your fault, this insurance can assist you in recouping expenses that your regular auto insurance doesn’t cover. Personal injury damages, lost wages, automobile rental costs, or policy excess could all fall under this category.
Legal defense: This insurance can pay for your legal defense fees if you’re charged with a driving-related infraction (such as a speeding ticket or hazardous driving charge).
Contract disputes: This insurance can pay for the expense of filing a lawsuit if you have a disagreement with your car, such as one with a mechanic or a car dealer over subpar work or a defective vehicle.
What is commercial legal expenses insurance?
Commercial Legal Expenses Insurance provides coverage for legal costs and expenses incurred by businesses. It can help protect businesses from the potentially high costs of legal disputes and proceedings. Some of the common areas it may cover include:
Employment disputes: Claims related to unfair dismissal, discrimination, harassment, etc. This can cover legal costs whether the business is the claimant or the defendant.
Contract disputes: Costs associated with disputes over contracts with customers, suppliers, tenants, etc. This may include breach of contract claims or issues with the interpretation of contract terms.
Tax investigations: Costs for representation during a tax audit or other investigation by tax authorities.
Property protection: Legal costs for pursuing claims related to property damage, trespassing, nuisance, etc.
Compliance and regulation: Costs for defending the business against allegations of regulatory breaches or failures to comply with laws and standards.
Directors’ and officers’ liability: Costs for defending directors and officers against claims made against them personally in the course of their duties.
The specific coverage and limits can vary between policies. Businesses should evaluate their potential legal risks and liabilities to determine what level of coverage is right for them. Legal Expenses Insurance can provide reassurance that the costs of legal action won’t be financially crippling.
Like Motor Legal Expenses Insurance, Commercial Legal Expenses Insurance is usually an optional add-on to a standard business insurance policy. Standalone policies are also available from some insurers.
Do you already have legal expenses insurance?
Legal expense insurance is usually an optional add-on when buying an insurance policy. Lawyers expenses cover insurance is rarely included in regular coverage. It is commonly combined with the following:
- Home contents insurance
- Buildings insurance
- Car or motorcycle insurance
You might also have legal expenses insurance through another policy or a job perk. Check your existing insurance policy documentation to discover if you have this coverage.
Types of Legal Expense Insurance
Personal Legal Expense Insurance
Personal legal expense insurance covers legal costs associated with personal legal issues. These may include divorce, disputes with landlords or neighbors, employment disputes, and personal injury claims.
Business Legal Expense Insurance
Business legal expenditure insurance covers business-related legal fees. These may include contract disputes, employment disputes, tax investigations, and regulatory investigations. Business legal expense insurance can be taken as an add-on with business insurance.
Motor Legal Expense Insurance
Motor legal expense insurance covers legal costs associated with motor vehicle-related legal issues. These may include personal injury claims, uninsured loss recovery, and defense against motoring prosecution.
Property Legal Expense Insurance
Property legal expense insurance covers legal costs associated with property-related legal issues. These may include boundary disputes, planning permission disputes, and nuisance claims.
Family Legal Expense Insurance
Family legal protection (FLP) coverage is available through your house insurance policy. It protects you from the costs of being sued or claiming someone else for concerns such as property disputes, employment issues, boundary conflicts, and personal injury claims.
What kinds of insurance have legal expenses add-on?
Here is the following insurance, which has legal expenses add-on to cover your lawyers cost.
- Professional indemnity
- Employers’ liability insurance
- Auto Insurance Cover
- Home Insurance
- Public liability insurance Coverage
Is legal expense insurance worth it?
Legal Protection Insurance is worth it. If you work in a high-risk industry then you will be more likely to face legal disputes and more likely to benefit from legal expense insurance.
Frequently Asked Questions
Can you add family members to your Legal Protection Insurance policy?
Yes, you can add your four family members to your policy as long as they all live with you.
Does the legal cover policy cover passengers if we are in an accident together?
Yes, every passenger in your car is cover for uninsured damages, which could include filing a claim for personal injury compensation or loss of earnings.
Does a legal insurance policy cover me if you have an accident abroad?
Yes, the policy includes representation to help you recover uninsured damages or defend a motoring prosecution throughout Europe.
Can I buy legal expense insurance without having any insurance policy?
Yes, you can buy lawful stand-alone legal motor expenses insurance.
