Commercial legal expenses insurance (LEI) in the UK protects businesses against the high costs of legal disputes, covering solicitors' fees, court costs, and expenses for employment, contract, and tax issues. Policies usually provide 24/7 legal helplines and cover up to £1 million in costs, often requiring a 51% or better chance of success. 

Key Coverage Areas

• Employment Disputes: Costs for tribunals regarding staff claims or disciplinary actions. 
• Contractual Disputes: Legal action against suppliers or clients, including debt recovery. 
• Tax Investigations: Representation during HMRC inquiries. 
• Property Protection: Disputes regarding business premises. 
• Legal Defense: 
• Costs to defend the business against criminal prosecutions.

Policy Details & Costs

• Cost: Policies can start from around £5–£6 per month.
• Limits: Indemnity limits typically range from £50,000 to £1,000,000.
• Eligibility: Generally designed for SMEs with limited in-house legal resources.

What will commercial legal expenses insurance pay for? 

Depending on the policy you have, commercial legal expenses insurance may pay the legal costs for: 

• A dispute with an employee that cannot be resolved;
• An enquiry into the tax or VAT returns of the business;
• Where legal advice is needed quickly;
• A threat to prosecute the business following a health & safety inspection;
• A neighbouring business restricts access to the premises;
• Help navigating and resolving contract disputes;

 Plus:

• An appointed lawyer’s legal fees; 
• Court fees; 
• Expert witness costs; 
• The other side’s costs if you are unsuccessful; 
• Certain compensation awards you are ordered to pay.

If you are interested in purchasing commercial legal expenses insurance speak to your insurance adviser. 

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