What Is Legal Expense Insurance?

Legal Expense Insurance (LEI) is a type of insurance policy that provides coverage for legal expenses related to various types of legal disputes. LEI policies typically cover the cost of legal representation, court fees, and other expenses related to litigation or arbitration.

Here are some examples of why a business may need legal expense insurance:

• Employment disputes: If a business is sued by an employee for discrimination, harassment, or wrongful termination, legal expense insurance can help cover the cost of legal fees and settlements.
• Contract disputes: If a business is involved in a contract dispute with a customer, supplier, or vendor, legal expense insurance can help cover the cost of legal fees and settlements.
• Tax disputes: If a business is audited by the government or faces a tax dispute, legal expense insurance can help cover the cost of legal fees and other associated costs.
• Criminal defence: If a business owner or employee is accused of a crime related to the business, legal expense insurance can help cover the cost of legal fees and other associated costs.
• Intellectual property disputes: If a business is involved in a dispute related to patents, trademarks, or copyrights, legal expense insurance can help cover the cost of legal fees and settlements.
• Some policies may also provide coverage for legal advice or assistance with legal disputes that have not yet escalated to litigation.

Overall, legal expense insurance is important for businesses of all sizes to protect themselves from the costs associated with various types of legal disputes. Without this insurance, a business may be at risk of significant financial losses due to legal proceedings.

Like other types of insurance policies, LEI policies can vary in terms of the types of coverage provided, the exclusions and limitations, and the cost of the premiums. It's important to carefully review the policy terms and work with an experienced insurance broker to obtain the appropriate coverage, that’s where Armour can help.