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What is our Essential Business Legal cover?


All businesses will have legal problems from employment issues to tax disputes, which can be unpredictable, expensive and time-consuming to resolve. Our Commercial Legal Expenses Insurance offers a cost-effective legal cover for businesses to resolve legal issues.

Business Legal Expenses Insurance is designed to help cover legal costs and provide expert support on issues such as employment disputes, contract disputes, debt recovery, data protection, tax, and more. With Legal Expenses Insurance, companies can have peace of mind knowing that they have access to expertise and financial support when needed.


We can help with the following legal issues:

  • Where expert legal advice is needed quickly

  • A dispute with an employee escalates and can’t be resolved

  • A notice of an enquiry into the tax or VAT returns of the business is received

  • A Health & Safety inspection ends with a threat to prosecute the business

  • A neighbouring business restricts access to the premises

  • The business attracts adverse publicity


Our cover includes:

Employment disputes & compensation

If you have a dispute with
an employee it can be stressful, time-consuming and very costly to both your finances and reputation. We will pay the legal costs of defending your business if an employee brings a claim against you provided that there is a reasonable prospect of your defence being successful. We will also pay compensation awarded against you.

Tax disputes

No business welcomes an unexpected visit from the
taxman and any investigation by HMRC can be lengthy and expensive. Our tax advisors will represent your business if you are investigated or where a dispute arises following a compliance check by HMRC.

Legal defence

All businesses operate within a complicated framework
of legislation. Our business legal services website can
help you to remain compliant but if things go wrong we will pay the legal costs to defend your business throughout a criminal investigation or prosecution,
including motoring offences.


Your premises are vital to the smooth running of your business. Nuisance, trespass or damage to your property by
another party could put a substantial strain on your ability to operate effectively. The insurer will pay legal costs to protect your rights and claim compensation if necessary


How does our Essential Business Legal Insurance help?

Employment legal expenses scenario

The insured contacted ARAG when an ex-employee claimed that they had suffered discrimination on the grounds of religion. The case was high profile and received media attention which led to the insured receiving threatening and offensive correspondence. Our policy provided crisis communication cover which paid the fees of a public relations expert to manage media communication to help them put their side of the story.
As it was not possible to arrive at a settlement with their ex-employee through mediation a claim was filed at employment tribunal. The solicitor appointed by ARAG assessed the chances of winning the case at 60%.
Due to the complexity of the case it was listed for a 4 day hearing. The case was settled in the insured’s favour and the legal costs of £21,000 were paid by ARAG.

Property legal dispute scenario

Our insured runs a small manufacturing business from purpose-built premises on a small industrial estate. Adjacent to the premises is a second-hand car dealership. On numerous occasions, the dealership had been parking stock on our insured's property and obstructing access. Our insured contacted the ARAG legal advice line who advised they had a potential claim. This was passed to a specialist solicitor who successfully pursued the claim. ARAG paid the solicitors costs of £2,300 plus VAT and the stock was moved from the insured’s premises.


News & Press

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