Legal Expenses

Businesses face unpredictable legal problems from employment issues to tax disputes and the cost in resolving these can run into
huge sums of money. A commercial legal expenses insurance policy can offer a cost-effective solution to help businesses overcome their legal challenges.

Key Benefits:

Legal advice helpline

Sometimes you just need a bit of guidance or confirmation of how to proceed with certain matters. Some legal expenses policies offer a confidential helpline for businesses to access 24/7, 365 days a year.

Crisis Communication

Negative publicity can be crippling to a business and a swift and effective response is what’s need to repair and restore a company’s reputation. A legal expenses policy could provide you with access to PR support to manage adverse media publicity.

Employee Support

Sometimes your employees may not feel comfortable talking to people within the organisation about issues they may be facing which is why an over the phone counselling service is a valued employee benefit. This service is often given as part a legal expenses policy.

Tax Advice

HMRC regularly conduct audits on businesses and getting a tax consultant can be costly. A legal expenses policy can help by providing cover to pay for a tax consultant in the event of an HMRC investigation along with a tax helpline to assist with all tax-related issues.

Legal Document Library

Making sure documents are up to date and relevant is vital but can be time-consuming. With a legal expenses policy, you have access to a resource library where you can personalise the legal documents you need.

Contract Disputes

If you are buying, selling, hiring or providing goods or services there will be a contract between you and another party. You or the other party could challenge the contract and a legal expenses policy can help provide a lawyer to negotiate your rights in a contractual dispute.

Debt Recovery

Cashflow issues can be significantly disruptive in any business but a legal expenses policy can help provide a debt recovery solution to recover money and interest due from the sale or provision of goods or services.

Tenant Disputes

Most tenancies run smoothly, but if there is a problem there can be lengthy and costly legal disputes. Having a legal expenses policy as a landlord will help provide you with advice and cover for legal costs should any issues relating to your property or tenants arise.

 

Legal Expenses Claims Examples

Criminal Prosecution

A company was moving to new premises and as part of the move, they wanted to enlarge the car parking on site which involved the felling or a large number of trees. The company enlisted the services of a tree surgeon who said that they would deal with all relevant permissions. The business was later charged with felling a protected tree without the appropriate authority from the Council or Forestry Commission which can lead to an unlimited fine. On the advice of their lawyer, the insured pleaded guilty and in mitigation explained that they had used and relied on the services of a professional tree surgeon. The Court accepted their plea and limited their fine to £1,000. The company incurred £6,500 of legal costs in preparing for and being represented in Court which was covered by their legal expenses insurance policy.

Property Disputes

A company leased the top floor of a large office building. The building suffered from a leak in the roof which subsequently prevented the company from using their office space and their business equipment was damaged. When asked to fix the roof, the landlord claimed that it was the responsibility of the business to pay for repairs. The business took the landlord to court and the landlord was ordered to pay for roof repairs along with additional damages to compensate for losses to the company. The legal costs to the company were £32,000 which were picked up by their legal expenses policy.

Data Protection

A laptop containing over 8,000 patient records was stolen from the home of a medical centre employee. The Information Commissioner considered imposing a direct civil monetary penalty on the company but through their lawyer, the company were able to show that they had robust procedures for controlling the data which included the encryption of the laptop in question. This lead to no penalty being imposed on the company and their legal expenses policy picked up the £7,000 of legal fees.