Legal Expense Insurance

What is Legal Expense Insurance?

Both business owners and individuals have times when they need access to a good lawyer but simply can’t afford one. Even getting advice from an attorney can be costly, and things become more expensive when you need actual legal representation in court. The expense associated with good legal help is the number one reason so many people don’t get the legal help they need. This is precisely why legal expense insurance is a thing and why people are willing to invest in it. 

Legal expense insurance does exactly what it sounds like. It guarantees an individual or business access to legal counsel when they need it. It also covers the costs of lawsuits and other legal help when the need arises. This form of insurance comes in two different types, Before the Event BTE or After the Event ATE. BTE insurance is generally more affordable and easier to obtain, but many people don’t even consider legal expense insurance until they are already facing some potential legal troubles. This is why ATE is the more common form of legal expense insurance individuals purchase. If you have a reason to suspect you’ll face legal issues soon, you can obtain an After the Event insurance policy shortly after hiring an attorney to represent you in your case. 

ATE insurance is more expensive and comes with more restrictions in order to secure it. Either policy will help you avoid costly legal fees and give you the tools you need to enjoy high-quality legal representation for all the issues you encounter in the future. If you have the foresight to obtain this insurance for yourself or your business long before any legal issues arise, you will spend less on your policy. But, this insurance is good to consider no matter what the conditions are like. 

Why is Legal Expense Insurance Important?

Whether you’re running a business or just carrying on as an everyday individual, there is always a chance you’ll need good legal representation for something and that you’ll have legal bills to pay. Even if you don’t think the risk of this is high, it is still important that you acknowledge that you could face these issues in the future and that they could be devastating to you. Once you understand the risks you face, it’s easier to see why it makes sense to invest in legal expense insurance. This insurance policy protects you against steep legal fees and ensures you have a reliable attorney you can look to when you face any legal issues at all. 

Imagine as a business owner that a contract with another business goes bad, and you’re suddenly being accused of costing the business tens of thousands of dollars. The company is also blaming you for the losses and fighting for a settlement that you cannot afford to pay. This lawsuit could bankrupt your company and force you to look for another means of employment. You may be able to fight the issue and get a judge to say that you don’t owe this money, but doing so requires hiring a skilled attorney to represent you. Skilled attorneys are expensive, and you may not have the funds  for this. That leaves you with few options to pursue other than taking on debt in order to cover your legal fees, and that’s a risky move to make. You would be in a far better situation if you just invested in legal expense insurance. With a legal expense insurance policy in your name, you would get the legal help you need to resolve this issue, and you would have extra funding if you needed to go through a lengthy legal case as well. Some of these policies will even help cover any money you’re ordered to pay the other company, though a business general liability insurance policy would be better for that. 

Legal expense insurance is an important investment for every business owner, but it’s also something individuals can use, and that can keep them from owing vast amounts of money for legal fees. 

Who is legal expense insurance made for?

Legal expense insurance is designed to reduce the burden of paying for costly legal fees for anything major that occurs in your life. Whether you’re facing a drawn-out divorce, your business is being sued for breach of contract, or you’re facing another issue, this insurance policy is good to have. Because this type of insurance policy covers so many different potential legal issues, it’s a powerful tool for a wide range of different types of people and diverse businesses. 

Whether you are a business owner or just an everyday individual, you should consider legal expense insurance. This is especially true if you have a high net worth or running a business that works with many different parties regularly. The more assets you have and the greater your network is as a business, you may end up facing legal issues. Invest in this insurance policy and protect yourself from excessive costs that could cripple you otherwise. 

If you’re considering this type of policy, take a moment to talk with an insurance expert about what sort of policy you should get and how to get coverage that’s actually going to protect you fully. It will take time to get the information you seek, but it’s worth the effort to get a reliable policy overall.

Why should you choose PAIB Insurance for your legal expense insurance needs?

Hopefully, it’s easy to see why legal expense insurance is a good value and an investment that many individuals and businesses should make. When you understand the importance of this sort of policy, you can move on to investing in it to improve your life as well. It can be difficult deciding what company to work with, though, and many people don’t want to take the time to do this research themselves. 

Consider working with us at PAIB Insurance to access a local insurance broker that will connect you with leading insurance companies from different parts of Canada. Our team will get you access to quality companies offering legal expense insurance. Along with legal expense insurance, we also help business owners obtain business liability insurance, and our customers work with us for car insurance to protect them on a regular basis.