Rates charged at top legal practices have skyrocketed. In 2013, fees at the best legal practices had doubled in 10 years.
As a small business owner and tradesman, it’s your worst nightmare to have legal action taken against you. Not only is it a burden, but it can also lead to significant legal costs.
It’s common for tradesmen to object to legal expenses insurance. Most don’t believe they’ll ever need it.
But if you do face a legal challenge, this insurance can be a life-saver. Depending on the severity of the legal action, it could mean the difference between saving your business and going bankrupt.
As a tradesman and a small business owner, you’re a driving force behind the UK economy. Small or medium-sized businesses (SMEs) accounted for 60% of all UK private sector employment in 2017.
When you take out a policy with Tradesman Saver, you get Legal Expenses Insurance for FREE, therefore there is no need to object it. However, you should know why it is so important to have.
What is Legal Expenses Insurance?
Legal expenses insurance (LEI) is an insurance policy that covers the legal costs associated with certain legal actions. It can be taken out by both individuals and businesses.
As a tradesman or small business owner, LEI can help you mitigate the costs of any legal action taken against your business. You can take out legal expenses insurance after legal action is taken. But it’s better to be prepared beforehand.
You should be focused on running a successful trade business, not on potential legal action. Here are 9 reasons you shouldn’t say “no” to this type of insurance.
1. The Costs of Legal Proceedings Can Be Enormous
Whether the legal proceedings against you are on the small claims track or not, the cost can be a big blow to your business. If you must go to court, you’ll need to pay legal fees. You’ll also need to pay a solicitor.
Managing money at your trade business is difficult enough. There’s no need to add these additional costs to your books.
2. It Can Give You Access to Additional Legal Help
Most legal expenses insurance plans give you access to a legal advice helpline. This is a crucial resource. The helpline can help you determine your best course of action when facing legal action.
With a helpline, you can obtain basic legal advice without paying outrageous fees.
3. It’s Affordable, Given the Alternative
LEI is relatively affordable, FREE when you take out a Tradesman Saver policy. Click here for further details.
More importantly, it keeps you from needing to save on your own for possible legal expenses. It’s also a better choice than the alternative. This insurance will give you access to legal services that could save you money in the long term.
4. You Can Save More If You Invest Now
It’s much cheaper to buy legal expenses insurance before-the-event (BTE). This means getting insured before legal action is taken against you. You’ll need to pay premiums, but you’ll save in the long run.
It is possible to buy insurance after legal action has been taken. This is called after-the-event (ATE) insurance. But it is typically more expensive.
When you buy a preemptive insurance plan, you’re covered just like any other type of insurance. You wouldn’t wait to get vehicle insurance only after you’ve been in an accident, would you?
5. It Provides Substantial Coverage
Most LEI schemes cover a substantial number of legal actions. In most cases, you can expect to cover expenses for the following:
- Employment and contract disputes
- Bodily injury or illness claims
- Property damage disputes
- Court fees
- Solicitor fee
There are some things that legal expenses insurance won’t cover, however. For example, most insurance policies won’t cover defamation lawsuits.
6. You Can Obtain Additional Cover
Depending on your plan, you could get coverage in other areas. The more you pay for your insurance, the more coverage you’ll usually receive. Keep this in mind when selecting your plan.
Costs depend on your particular risk profile. If your business is low-risk, you may not need substantial coverage. If you believe you’re at high risk of legal action, you may wish to invest more in insurance.
7. You May Able To Pay the Other Side’s Fees
If the worst comes to fruition and you lose your case, you may have to cover the other side’s expenses. This cost can compound upon your own legal expenses.
With the right plan, legal expenses insurance can cover these costs as well. This will bring you one step closer to putting the incident behind you.
8. Secure Uninsured Losses
Many trade businesses in the UK operate one vehicle or a fleet of vehicles. If you are involved in an accident that wasn’t your fault, your vehicle insurance may only cover so much.
If you invest in an uninsured loss recovery insurance policy, it could pay for a solicitor to pursue and recover uninsured losses.
9. You Have Options
If you already work with an insurer you like, you may be able to get LEI as an add-on to your current policy. Of course, stand-alone policies are also available.
Stand-alone legal expenses insurance is an excellent option for most businesses. If your current insurer isn’t providing the coverage you need, consider a stand-alone scheme. Many of the best legal expenses insurance schemes operate as stand-alone policies.
Protect Your Trade Business
With your livelihood and the livelihood of your employees at stake, you can’t afford to risk your business. Consider protecting your business with legal expenses insurance and other insurance options.
The world of insurance can be confusing. Most business owners don’t have time to spend unravelling its complexities.
Tradesman Saver is one of the fastest growing insurance schemes in the UK for trade professionals. Our goal is to make insurance simple for trade professionals and small business owners.
We’ve helped over 100,000 businesses get the insurance they need to protect themselves. If you want to insure yourself or your business, get a quote online right now.
If you don’t see your trade listed on our website or if you have questions, feel free to contact us with a short message.