Four great reasons why you should consider legal expenses insurance
Posted on 9th June 2021 by Phil Ainley
As a freelancer, contractor or self-employed business owner, you will no doubt be aware of the need for professional indemnity and public liability insurance, and in some cases employers’ liability cover if you employ staff.
An insurance policy that we also offer, that you might not be aware of is Legal Expenses Insurance (LEI).
We’ve put together 4 great reasons why we think you should consider what we deem to be a low-cost policy to enhance your business protection.
1. ‘Whoa, whoa, wait a minute Mr Tax Man’
It is commonly known that you could be approached by HMRC for a tax investigation.
You never know if this could be you, as each year the taxman can select any one out of 1,000 tax returns for scrutiny via random selection.
It can be an expensive exercise having your accountant prepare your records if you are selected. The LEI policy will help cover the costs.
2. ‘Invoice still outstanding’
Poet Robert Frost, once wrote “Don’t ever take a fence down until you know why it was put up.”
This analogy can be applied to contract agreements. You never know when a contract dispute may arise or for what reason.
Disputes can cause delayed invoice payments, leaving you out of pocket until the issue is resolved. The policy covers contract disputes.
3. ‘He said, she said’
As a director or employer, it’s great to have a supportive team behind you, but what happens when even your most reliable employee starts acting out of line?
When you employ staff, it puts you at risk of a potential employment dispute, such as unfair dismissal, which can result in legal proceedings and hefty court costs.
The LEI policy will cover the costs incurred by employment disputes.
4. ‘The court hereby summons you’
Should you be called up for jury service you may suffer a loss of earnings, this is especially relevant to self-employed professionals.
Many people will still be paid by their employer while they sit on a jury. However, if you are self-employed, you could find yourself out of pocket.
The LEI policy will pay the insured person’s net salary or wages for the time spent on jury service less any amount the court pays.
Useful Links
Professional Indemnity Insurance
Protects against claims of alleged negligence in your professional services, advice and designs.
Legal Expenses and Tax Investigation Insurance
Cover for contract disputes, tax investigations, court attendance, debt recovery, and more.
Directors and Officers Insurance
Protects your assets in the event of a claim. You may be held personally responsible for your business action and will have unlimited personal liability.
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