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Why is commercial legal expenses a must-have insurance cover?

 

Running a business comes with many challenges, from keeping up with the latest legislation to resolving problems with suppliers or dealing with an unexpected visit from the taxman. Expensive and time-consuming legal problems can crop up without warning.

We have commercial legal expenses policies to suit every size and shape of business, as well as bespoke commercial scheme options. To discuss any of these, contact us by clicking here or by joining our Live Chat; click the yellow icon on the bottom right of this page.

 
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We can help with the following legal issues:

Employment disputes & compensation

A dispute with
an employee can be stressful, time-consuming and very costly to the finances and reputation of a business. We will pay the legal costs of defending a business against a claim from an employee if there is a reasonable prospect of the defence being successful, and will pay compensation if it is awarded against the business.

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 a business if it is investigated or if a compliance check by HMRC leads to a dispute.

Legal defence

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

Property

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. We will pay legal costs to protect rights and claim compensation if necessary.

 

Property legal dispute scenario

Our policyholder runs a small manufacturing business from purpose-built premises next to the premises is a second-hand car dealership on a small industrial estate. The dealership had been regularly parking stock on our policyholder’s property and obstructing access. Our policyholder contacted the ARAG legal advice line who advised they had a potential claim.

This was passed to a specialist lawyer who successfully pursued the claim. ARAG paid the lawyer’s costs of £2,300 plus VAT and the stock was moved from the policyholder’s premises.

 
 
 

Employment legal dispute scenario

The policyholder contacted ARAG when an ex-employee claimed that they had suffered discrimination on the grounds of religion. This was a high-profile case, and the resulting media attention led to the policyholder receiving threatening and offensive abuse from members of the public. Our policy provided crisis communication cover which paid the fees of a public relations expert to manage media communication to help the business put over their side of the story.

It wasn’t possible to arrive at a settlement with their ex-employee through mediation, so a claim was filed at employment tribunal. The lawyer appointed by ARAG assessed the chances of winning the case at 60%, meaning that we could cover their costs.

Due to the complexity of the case it was listed for a 4-day hearing. The case was settled in the policyholder’s favour, and the legal costs of £21,000 were paid by ARAG.

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Day One Benefits


With most insurance policies, you don’t get any real benefit unless you make a claim. Our Legal Expenses Insurance is different; it offers a wraparound legal service from day one. There are benefits your customer can access straight away to help them manage and minimise any legal risks to their business.

 
Legal and Tax Advice
Legal & Tax Advice


Policyholders can call our legal advice helpline and get immediate advice about legal matters 24 hours a day, 365 days a year. They can also obtain tax-related advice from our tax helpline, available between 9am and 5pm on weekdays (except bank holidays). Their query will be dealt with by a qualified specialist who is experienced in handling legal and tax-related matters.

 
Legal Documents
Legal Documents


Our legal services website offers a wide range of useful tools, including a comprehensive range of legal guides and templates on subjects such as employment and Health & Safety that they can tailor to their business. They can also access videos and claims examples to show them how our covers work and how to make a claim.

 

Frequently asked questions about Commercial Legal Expenses insurance

 

News & Press

Please click here to be directed to our Product Oversight and Governance pages

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