Commercial Legal Expenses Insurance

This type of policy can protect your business against the cost of commercial legal advice and representation needed as a result of employment disputes, legal defence costs, property protection, bodily injury and tax protection.

You do not need to have this insurance, however, commercial legal expenses insurance can cover a number of legal costs that your general business insurance doesn’t cover. For example, commercial legal expenses insurance can help you pursue a claim over a contract dispute with a supplier.

This type of policy is designed to meet the needs of SME businesses which may employ staff but who have limited, or no in-house legal expertise.

Commercial Legal Expenses is designed to help you get legal advice as early as possible – before a problem arises such, as an employment tribunal or commercial contract dispute – through the telephone legal advice service.

However, should a more serious legal problem occur, it will provide cover for legal representation and cover for legal expenses if you need to take the matter to court.

Depending on the provider of cover this can vary but typically commercial legal expenses insurance may not help you with.

1. Issues that started before you bought the policy
2. Legal costs paid out before your claim is accepted
3. Civil claims where the likelihood of success, or ‘reasonable prospects of success’ are evaluated as being less than 51% at any time.

You should also read your policy documentation so you can be certain about what is excluded.

On some occasions they do via selected registers. The best approach is to declare everything you think is relevant, thus removing any concerns you may have about historical data.

The answer is an emphatic yes! Most insurers will ask you a direct question in relation to liquidation or bankruptcies, it may be for a limited period or ask you to declare any incidents ever. It’s important to answer the question correctly as this is often an area that comes up when insurers are investigating claims.

This is when a proportional amount of the premium is refunded in line with the amount of time that remained on the policy.

This is a non-refundable insurance policy, usually reserved for liability insurance policies.

Policies vary greatly. Some products, like high net worth private household policies give very broad cover including warranty free policies whilst other policies may restrict cover to very narrow set of conditions using policy wordings. It is also true that insurers approach to claims handling varies greatly and you should always enquire as to how well an insurer deals with claims.

Consumer policies tend to have a cooling off period. Some commercial policies will offer a pro rata cancellation refund if cancelled mid-term. Some policies are known as minimum and deposit. This means all the premium is due from the moment you take up the policy with no refunds given. It is always worth consulting with us regarding any questions you have around this. Our aim is always to provide you with the insurance solution which best fits your business and current needs.