Legal Expense Insurance (LEI)

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Legal expense insurance designed for your business needs

Legal expense insurance is a very valuable type of protection all organizations can benefit from having. As we are all aware, legal representation is expensive. Costs are north of $400 per hour, and you can quickly rack up thousands of dollars in fees. Most small businesses need more financial resources to pay for a lawyer. You come to a point where you must choose to go into debt to have representation or move forward with no lawyer. It's not an ideal situation.

Legal expense insurance ensures you get representation when needed without risking your organization's financial well-being.

ThinkInsure will help you protect your company against liable claims and lawsuits with legal expense insurance. Compare quotes to find affordable plans.

Top things to know about legal expense insurance

Legal fees are expensive. All businesses can benefit from additional legal protection.
Legal expense insurance gives you access to legal resources and representation.
It’s stand-alone coverage that is a good supplemental policy to add to your existing business coverage.

What is legal expense insurance?

Legal expense insurance (LEI) protects businesses against expensive fees. This insurance gives you free access to and helps to cover the cost of lawyer fees, litigation, advice, reports, legal documents, and other services. You have coverage whether you choose to take legal action or if a lawsuit is brought against your company.

What are the types of legal expense insurance?

There are two main types of this type of insurance. While they offer similar protections, they are for different situations. They are before-the-event (BTE) and after-the-event (ATE) coverage:

Before the Event: This helps to cover the fees associated with a potential legal issue. This includes lawyer fees, court costs, the fees of the other party, and judgements made at trial.
After the Event: This covers the cost of legal issues that have already occurred. Parties who do not have BTE insurance commonly purchase it.

Insurers can offer you a policy based on your unique legal protection needs, allowing you to customize your plan. For example, if your primary concern is employment contacts, you can tailor your plan to focus on this area. Some plans allow you to pick and choose the type of protection you want to include in the plan.

What businesses need legal expense insurance?

Legal insurance is typical among small businesses that do not have a lawyer internally and companies that require occasional legal advice. Businesses that commonly have this type of insurance include SMBs, entrepreneurs, sole proprietors, partnerships, and corporations. LEI is an excellent additional policy to add to your small business insurance policy.

What does legal expense insurance cover?

Legal insurance provides coverage for a variety of legal situations and services. You will receive advice over the phone from a lawyer who specializes in the area of law in which you require assistance. If necessary, they will represent you in court and provide additional support as needed.

Plans include the following:

Legal advice: General legal counsel.
Employment disputes: Advice if an employee files a lawsuit against your organization.
Contract disputes: Representation if you need to pursue action against parties who breach a contract.
Trial defence and court attendance expenses: Costs associated with court appearances.
Tax audits and protection: Advice for tax audits from the Canada Revenue Agency (CRA).
Legal defence: Lawyer fees for representation.
Statutory license protection: Representation if your business license is suspended or cancelled.
Bodily injury: Defense if your business or services cause bodily injury to another party.
Property protection: Legal action related to damage caused to your property.

You can also receive advice for many other situations, including permits, compliance, contracts, incorporation, small claims, and disputes.

What does legal expense insurance not cover?

All insurance policies have exclusions. Make sure to inquire about the types of situations that are not part of the insurance. Here are the common things that are not applicable:

Criminal acts and fraud
Pre-existing legal disputes and cases
Family law
Mismanagement of finances

How much does legal expense insurance cost?

The cost of a legal protection policy can be as little as a few hundred dollars per year, and it goes up from there. All situations are different, and your premiums will be based on a variety of considerations, including the following:

Your industry and services rendered
Previous legal issues
Annual revenue
Plan limits
Potential threats to your business
The type of representation required

Why get a legal expenses insurance policy?

Getting access to good legal advice quickly is an asset for any company. There are a lot of advantages to selecting this type of plan and adding it to your current insurance. They include:

Reduce the stress of dealing with legal matters
Reduce financial threats
Act based on sound advice
Preserve your reputation
Save money on lawyer fees

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2024-11-28

Betsy was a genuine pleasure to deal with considering the circumstances. Thanks again for all your help

Anthony Gomez

2024-11-27

Today, I want to take a moment to recognize Monica Chan, an exceptional insurance broker who has consistently gone above and beyond in her service to me. Monica's dedication to punctuality and consideration has been truly remarkable. She has always been prompt in responding to my inquiries and has never hesitated to offer her expertise and guidance. With Monica as my broker, I have never once felt worried about anything going wrong. Her proactive approach and attention to detail have provided me with peace of mind, knowing that my insurance needs are well-taken care of. Throughout our interactions, Monica has been incredibly helpful, patiently explaining complex insurance concepts and ensuring that I fully understand my coverage options. I wholeheartedly recommend Monica Chan to anyone seeking an insurance broker who genuinely cares about their clients' best interests. Her commitment to excellence and her willingness to go the extra mile make her an invaluable asset in the insurance industry.

Phyllis Baker

2024-11-20

Absolutely amazing service the broker Todd worked on my quote fast I recommend this company to anyone very professional I’m so glad I called them .. Thank you for your great work

Charles Cameron

2024-11-15

Betsy Bannon has been nothing short of amazing at helping us through the complex process of acquiring business insurance. She quickly understood our needs and expertly guided us to the right solution. From start to finish, she made us feel like her most important client which gave us the confidence that we were in great hands. We highly recommend Betsy!

Jermaine M

2024-11-05

I had a great experience with Patrick Vuong. He went above and beyond to help me update last minute changes to my policy in order to qualify for a government grant. Staying back late and coming in early the next day to help finishes the changes. Very kind and professional!

Mark Gaffney

2024-11-05

Betsy Bannon is a professional extremely friendly and knowledgeable and made my experience wonderful! Highly recommend her for any insurance needs. Mark Gaffney

fabian ward

2024-11-04

Great service! Prompt and very helpful! Thanks to Todd allan for really helping me out!

Stephen Mcfadden

2024-11-01

Great experience working with Sohel Rahman, appreciate his honest and can-do attitude. Highly recommend!

Legal expense insurance FAQs

Is legal expense insurance mandatory?

No. This insurance is not legally required for you to operate. But it provides you with significant benefits as a business owner. If you can fit it within your budget, it is a highly valuable type of protection, mainly if you operate in an industry with greater exposure.

Can I get stand-alone legal expense insurance?

This insurance is a stand-alone policy, but it also works in conjunction with other types of commercial insurance coverage. Speak with your broker or insurer about your options for adding this coverage to your existing policy or getting a standalone plan issued.

Does legal expense insurance cover pre-existing issues?

No. This type of protection applies only to legal issues that arise after you have coverage in place. It does not cover pre-existing issues.

Where can I buy legal expense insurance?

Working with a broker is your best option for purchasing legal expense insurance. Our commercial insurance brokers work with multiple providers and can help you find the specific type of representation based on your business requirements.

Does legal expense insurance offer protection for all types of lawsuits?

No. Some legal issues are not included. No two policies are the same. The type of services offered within the plan will vary by insurer. Shop around to see which plan provides the kind of representation that best matches your business operations.

Get a legal expense insurance quote today

Get a free legal expense insurance quote and protect your business's interests. We’ll make sure you have the right coverage based on your industry and threat exposure. Speak with us today.

Call 1-855-550-5515 or request a quote online, and we’ll be happy to help you.

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Legal Expense Insurance

Get access to legal advice and protect your business with legal expense insurance in Canada