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Businesses have been battered by rising costs in recent years, from higher energy, input and employment bills to the 6% hike in corporation tax under the previous government and the increase in employers’ NI contributions, last year.

At the same time, the legal environment in which businesses operate is becoming more and more challenging and risky.

Companies have always had a steady stream of new legislation to cope with, but resolving workplace and commercial disputes has become more difficult and more expensive.

Legal costs have outpaced inflation too. While this increases the cost of legal protection it also makes it all the more important to have such cover in place.

Delays in the courts are slowly improving but still a long way from pre-pandemic levels and the number of outstanding employment tribunal claims continues to rise. As well as extending the overall cost of making or having to defend such claims, delays create further uncertainty and cost for businesses.

 
 
 

Meeting the legal needs of SMEs

In 2022, the Legal Services Board published the results from the fourth edition of its Small Business Legal Needs survey. This extensive piece of research that has been conducted every few years, for over a decade, surveyed more than 10,000 owners and managers of small businesses in England and Wales.

The survey found that roughly a third (32%) of businesses had experienced a legal issue within the previous 12 months. Inevitably, the likelihood of having a legal problem increases with a company’s size. Two thirds (67%) of businesses with 10-49 employees experience some sort of legal problem every year.

Legal intelligence

As well as giving policyholders enormous value, even if they never have to make a claim, ARAG provides a trusted source of legal and business support at a fraction of the typical cost.

At a time when courts have rebuked claimants for their reliance on unreliable AI-generated legal guidance, ARAG is a source of legal support that business owners can count on.

Better value in a risky world

At ARAG, we’ve always welcomed increasing claims volumes as a sign of the growing popularity and utility of our products. Legal expenses is a maturing market in the UK, but still a relatively young one.

The modestly increasing cost of legal expenses insurance is, in part, a product of its popularity and success. Businesses of all sizes are becoming more and more aware of the value legal protection offers, and using it much more often.

ARAG remains committed to delivering the best possible legal protection products with the widest cover and the greatest array of benefits. While they may not always be the cheapest available, we’re confident that they will always represent far and away the best value.

Disclaimer - all information in this article was correct at time of publishing.

 

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