Business Legal Expenses Insurance
Biima
Legal Expenses Insurance Cover: A Business’ Ultimate Protection
Disputes and legal actions have become common in today’s extremely competitive business landscape. Small to large, every business is equally vulnerable to various legal risks, such as consumer complaints, employee claims, or contract disputes. The costs and efforts involved in pursuing or defending a legal action are significant, making it essential to have a robust legal expenses insurance policy. It provides YOU with great relief by minimising the financial burden involved in resolving legal disputes.
Key merits of legal expenses insurance in Australia:
- Covers legal expenses related to property disputes with the landlord
- Covers legal costs of pursuing subcontractors to rectify defects
- Covers breach of contract with traders where a written agreement is in place
- Supports the process of recovering unpaid funds by defending allegations of defective work
For all such varied reasons, legal expenses insurance is a crucial component for every business. This insurance comes primarily in two types—BTE (Before the Event) and ATE (After the Event). As their names signify, the first one provides coverage for disputes that may occur in the future, while the other is purchased after the event has occurred. Each has its share of merits in the business sector; YOU just need to find what’s suitable for YOU.
Consider contacting our BIIMA brokers, who are qualified according to the requirements of ASIC, to access a well-customised legal expenses insurance coverage. We will scour the market on YOUR behalf and lay a range of suitable options in front of YOU. Then, together, with YOUR best interests in mind, we will analyse each alternative and finalise the insurance that provides the best value for YOUR money.
Legal Expenses Insurance
Insurances
Insurances We Provide
At BIIMA, we bring YOU a full spectrum of insurance policies from leading market players to protect YOU, YOUR assets and YOUR business – manage risks and live with added peace of mind.
Choose BIIMA Brokers For The Best Legal Expenses Insurance in Australia
01
Tailored Solutions
Providing personalised insurance support for businesses and individuals since 2015.
02
Diverse Portfolio
A rich insurance portfolio – 85% commercial and 15% personal insurance.
03
Customer-First
We keep YOUR interest, YOUR need, and YOUR satisfaction at the CORE of our Insurance Solutions.
04
Multilingual Experts
We have a multilingual team, so language would never be a barrier to us.
Connect and Find the Most Suitable Legal Expenses Insurance Coverage
Insurance by Industry
Industries We Cater
We assess risks and vulnerabilities inherent to YOUR industry and ensure YOU are covered where it matters the most. Whether YOU are a small enterprise or a large-scale business, access tailored insurance solutions with us. Diverse industries, ONE Insurance Broker firm!
Choosing The Right Commercial Legal Expenses Insurance
Legal expenses insurance is a broad term, while commercial legal expenses insurance is a specific type provided for businesses. It is specifically tailored to cover legal costs arising from disputes or claims related to business operations like employment disputes, tax investigations, intellectual property claims, etc. These instances can result in significant losses or expenses, stunting the growth and potential of a business. That is why a robust pillar of support, such as commercial legal expenses insurance, is pivotal.
When buying any stand-alone legal expense insurance, including commercial alternatives, one needs to consider some key factors. Our BIIMA brokers will carry out extensive analyses with the following in focus:
- YOUR business’ legal risks: Each industry has its distinct vulnerabilities, so knowing YOUR specific risks is the first step.
- The scope of coverage: Each commercial legal expenses insurance policy covers certain types of risks, from defending claims to contract disputes. Our job is to ensure the chosen policy covers the most relevant areas for YOUR business.
- Limits and deductibles: The policy limit is the highest amount YOUR insurer will pay if a claimable event arises. Deductibles are the amount YOU must pay out of YOUR pocket to kick in the insurance coverage.
- Exclusions in coverage: Exclusions, such as pre-existing disputes or family law matters, are the areas not covered by a policy. It’s important to look into these exclusions before finalising a policy.
- Cost vs. Coverage: While it may be tempting to pick a policy with lower premiums, it is vital to ensure its coverage is adequate for YOUR assessed risk level. The goal is to find a policy that offers the best combination of cost and coverage.
We check a lot more factors while suggesting a particular coverage for our clients, including insurer reputation, policy duration, renewals, and more. It will always be worthwhile to have our insurance broker by YOUR side.
Most Asked Queries
Frequently Asked Questions
What’s the distinction between Legal Expenses Insurance and Liability Insurance?
While most confuse the two, legal expenses insurance (LEI) is widely different from liability insurance. The first covers the legal costs of pursuing or defending legal disputes that are not related to liability, and the latter covers the claims made by third parties for damages. Thus, LEI covers a wider range of legal costs than liability insurance.
Here are some examples.
- Liability insurance – Injuries, workplace discrimination, property damage, defamation, negligence claims, and product defects.
- Legal Expenses Insurance – Contract disputes, employment claims, debt recovery, intellectual property conflicts, and tax compliance issues.
Can individuals get legal expenses insurance?
Absolutely! Legal expenses insurance is open for both individuals and businesses. YOU can have it as an add-on to YOUR home or motor insurance policies, which will cover personal legal disputes. Neighbour disputes, family law issues, and personal injury claims are three common examples.
If YOU have a claimable event, here’s what a legal expenses insurance policy can cover for YOU:
- Lawyers fees
- Court costs
- Settlement costs
- Travel expenses
- Mediation fees
- Consultation costs
- Expert witness fees
- Other legal expenses to pursue or defend claims
The policy may also have some exclusions, which means they are not covered by the insurer. So, check before signing up for a policy or seek a qualified insurance broker, such as BIIMA.
What does it mean to cover both pursuing and defending claims?
Pursuing and defending are two separate types of actions a business or an individual takes with regard to legal expenses insurance.
- Pursuing claims refers to the costs incurred when YOU initiate a legal action against another party. For example, when a breach of contract arises, YOU seek compensation from a trader, so YOU initiate the process yourself.
- Defending claims, on the other hand, meant the costs involved in defending yourself against claims made by others. Here, the process is initiated by another party while YOU are at the receiving end.
A legal expenses insurance policy covers costs related to both scenarios, providing YOU with significant relief.
How do I claim my legal expenses insurance policy?
If BIIMA is YOUR insurance broker, we will assist YOU in claiming YOUR LEI policy. It will be easier, swifter, and more efficient. Here are the following steps we take YOU through:
- Re-check the policy documents as soon as the claimable event occurs
- Understand the coverage and claim procedures
- Contact the insurer and provide them with details of the dispute
- Collect necessary documents related to the issue at hand
- Submit all the documents and evidence to the insurer
- Cooperate with the lawyer appointed by the insurer
- Track the progress and address any issues if arisen
By following these steps, we will ensure YOUR claim is processed as soon as possible and that YOU receive the entitled coverage.
What happens if I have a legal dispute but no LEI policy?
When YOU have to face a legal dispute without a legal expenses insurance policy, YOU pay for all the costs out of YOUR own pocket. It includes everything from hiring a lawyer to court costs to settlement fees. This can be too costly to bear alone, which may even put YOUR business at risk.
Additionally, without a LEI policy, YOU will also find it difficult to access the right professional legal support, which can impact the outcome of YOUR case. Thus, consider taking up legal expenses insurance for better protection and peace of mind.