Commercial Legal Expenses Insurance


An essential part of your business insurance portfolio

Legal Expenses can be a life saver to any business, the cover provided is very wide and although it has its limitations its a cover that every business must have irrelevant of what that business does.

Defending and protecting your business

The all important part, what are you actually being covered for?

Employment Disputes

Yes this is the one that is going to cause you problems, its a fact of life that turning on the TV greets you with yet another ad for some form of compensation. Not a lot you can do to stop this, and even if you have the best employee in the land, when it comes to pound notes unfortunately things do change.

Employment disputes cover under a commercial legal expenses insurance policy provides protection right from the start, even before there is a dispute. Legal helplines start the process and/if it gets legal you will be provided with the insurers own legal representative or one appointed for you – these people are specialists.

Compensation Awards

Unfortunately if the Employment dispute does reach the tribunal stage and the dispute goes against you, the insurer will pay any compensation awarded but agreed by them.

The cost of not not having even the most basic of cover would be massively overshadowed by the cost of a tribunal. Employment disputes cover on its own is worth the premium.

Tax Protection

It doesn’t matter who you are, what your business is, an investigation into your tax affairs can arrive at any time. As long as everything is above board then everything is fine.

If however, there’s a dispute with HMRC, your commercial legal expenses insurance will normally provide cover for a formal aspect or full enquiry into your business tax affairs, and appeal proceedings following an assessment by HMRevenue & Customs relating to VAT.

This cover is included within the overall product, something your Accountant will provide in isolation but at a higher cost.

Contract Disputes

Even with the best intentions in the world, what starts out as a simple straight forward transaction can at times turn out rather ugly, and if it does your commercial legal expenses insurance is there to protect you.

Most policies come with this cover as standard now, if you already have legal expenses cover and it doesn’t have contract disputes cover included, you need to be asking a few questions as to why not.

This section provides cover for contract disputes and debt recovery actions relating to the purchase, hire, hire purchase, lease, servicing, maintenance, testing, sale or provision of goods or services.


This cover is standard on some insurance policies but an option on others, we usually include this as standard on the commercial legal expenses policies we provide. The policy will cover an event which causes physical damage to your property, public or private nuisance or trespass, and recovery or repossession of property from an employee or ex-employee.

There are some significant points to understand about Legal Expenses

  • Commercial legal expenses insurance does not provide a pot of money for you to take action against a third party, if it did everyone would have the cover, in most cases it is defense only, there are exceptions such as debt recovery.
  • All commercial legal expenses policies have one important condition, its called a “prospect of success clause”. What this means is that if the insurer considers that there is little or no prospect of success then they will not indemnify you, this is usually 51%. They may provide assistance but not indemnity, but in essence they will not flog a dead horse.
  • Legal expenses insurance should not be seen as a last resort – the insurance policy will not pick up a failed attempt by either you or an appointed legal representative of yours where you have already pursued or defended an action against you.

Legal cover – an essential part of your business defense

Contact us now, lets discuss how we can provide you with quality legal protection for your business, with cover starting in some cases for less than £100 its not even worth thinking about

Call us NOW – 01623 889 530

Commercial Insurance for Business in Mansfield, Nottingham


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