Commercial Insurance

Tuesday, March 16, 2010

Commercial Legal Expenses Insurance - Essential Cover For Your Business

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Most forms of business insurance package policy will include the three main liability covers, public, products and employers. These provide you with insurance cover in case you cause injury, illness, disease or damage to third party property or persons. There has to be actual physical or psychological damage for their to be a valid claim.

If a claim is made and it is valid, then your policy will include cover for not only any settlement but also for solicitors fees in defending any action. But what happens in the event of you, or your business, having to pay out other legal expenses?

You can face a claim against the business that falls outside of the traditional commercial liability insurance. Typical examples of other legal expenses you may face are in respect of employment tribunals and Inland Revenue investigations.

You have two options for commercial legal expenses insurance, you can either take out a separate insurance policy or you can try and add this into your standard business insurance cover. A separate policy is usually the more expensive option. Nowadays though, adding this to, or having it included as standard in, a package is a much more popular option and more insurers are doing this.

The actual cover is usually provided by a specialist insurer and the limits do vary. A typical extension to a policy will include employment disputes, tax investigation and property protection cover. Due to changes in legislation, the UK is becoming an increasingly litigious place in which to trade. It does not take much for a disgruntled ex-employee to raise a claim or discrimination or unfair dismissal, depending on which "no win no fee" solicitor they approach.

Of course, business are in the wrong as well as employees pulling a fast one, thankfully the insurance cover will apply in both cases. The most important thing to remember, in addition to actually taking out the cover, is that you need to notify the insurers as soon as you become aware of a potential claim.

The reason that this cover can be added for a relatively low premium, is because the insurers tend to use their own panel of solicitors who have agreed, fixed charges. If you decide to notify them way down the line, then they may severely restrict any payments made.

Speak to your business insurance broker to see whether you have this cover, if not get them to quote to add this to your policy as soon as possible.

Paul Roach has many years of experience in business insurance. For more information he recommends you visit this website on small business insurance.

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Labels: cover for your business, expenses, legal expenses insurance