Commercial Legal Expenses Insurance

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Legal Expenses cover can be arranged for the family, motor vehicles or commercial businesses. It can provide protection against the costs involved defending your interests in the event that civil or criminal convictions are brought against you. This article is focused on Commercial Legal Expenses insurance and how it can protect your business from unforeseeable legal issues that may arise.

Commercial Legal Expenses insurance can either be sold as an “add-on” to existing commercial risk policies such as Employers & Public Liability or sold separately on a stand-alone basis.

Defending the costs of your company’s legal rights should not be overlooked, especially for clients that can’t afford an in-house legal team. There is an ever-increasing amount of legislation that changes on a regular basis and is difficult to keep up to date with all of these changes.

Below is a list of claims that may arise and how commercial legal expenses cover can protect you.

Typical Claims Examples:

Employment Disputes Costs & Compensation Awards

An employee leaves their company suddenly and 2 months later claims constructive dismissal. We will fund solicitors to defend the employment tribunal proceedings and settle the solicitor’s fees and the award, if ordered by the court or by agreement between the parties subject to our consent.

Data Protection

An employer receives a letter from a Data Protection Officer complaining that they will not release data to an employee. We will fund the defence of the action the employee takes against their employer, obviously subject to us having reasonable prospects of success.

Prosecution Defence – Employers

A client is prosecuted for discharging toxic effluent into the local river. We will fund the legal fees in defending the case where, for example, the client can show that the effluent is being discharged from a neighbouring factory and not that belonging to them.

Prosecution Defence – Employees

A client owns a clothes shop. One of the employees is charged with false trade description by placing fake designer labels on clothing. We will fund the employee’s defence.

Property Disputes

A client owns a pub. One night an articulated lorry, which is attempting a three-point turn, crashes into the pub causing extensive damage. We will pursue a claim against the driver’s employers for any uninsured losses as a result of the damage to the pub and also for loss of profit whilst the building is being repaired.

VAT Disputes

A client submits his VAT return. The Inland Revenue comes back with a number of queries. We will fund the accountants to answer the Revenue’s enquiries.

In Depth Tax Investigation

A client receives a letter from the Inland Revenue saying an enquiry is being launched into business tax return for 98/99 tax year. Inland Revenue writes to accountants. We fund the cost of the accountant providing the necessary information to the IR.

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