Legal Expenses Insurance

While legal expenses insurance is not a legal requirement, you should consider it if:

• You employ staff and could face claims against you
• You sign contracts with suppliers, clients or landlords
• You chase clients or customers haven’t paid invoices
• You own or lease a commercial premises
• You work in a sector where compliance and regulation are part of daily business

Whether you run a small high street takeaway, run a warehouse or anything in between, you could still face legal costs - that could can add up fast.

What is and isn’t included in your legal expenses insurance will vary from insurer to insurer and depend on what policy you decide to take out. However, there are certain things which tend not to be covered, such as: 

• Any legal expense not agreed with your insurer before you incur it 
• Anything that happened before your policy started 
• Disputes over patents, copyright, trademarks and passing off are also often covered by a different type of legal insurance. This is the case for disputes over franchise or agency rights as well. 
• Franchise or agency rights disputes 
• Allegations of a criminal nature, for example fraud, violence or money laundering

No, legal expenses insurance is not a legal requirement in the UK. Unlike employers' liability insurance, which you must have by law if you have anyone working for you, legal expenses cover is optional. But if your business deals with contracts, staff or customers on a regular basis, you should consider it.

The cost of legal expenses insurance depends on several factors, including but not limited to: 

• Business size – A bigger business or one with more employees usually means more risk, and could lead to a higher premium 
• Level of cover – A higher cover limit for legal costs will typically cost more 
• Your sector – some sectors could face a higher risk of disputes than others, which insurers may factor into price. For example 
• Claims history – previous claims made by or against your business can affect your premium 

Legal expenses insurance is not sold as standalone cover with Bionic, but as part of a broader policy with covers like employers’ liability and public liability. Getting a quote is the best way to understand what level of cover your business should consider and how much it could cost. Our UK-based team can talk you through your options. 

At Bionic, we support UK business owners. We know that a one-size-fits-all insurance isn't always the best option, that's why we use a team of knowledgeable insurance brokers who work with a panel of trusted insurers to help you find coverage that fits your needs. 

Our UK-based team cuts through the jargon and helps business owners daily. They're on hand to talk you through your options. Get in touch with us today by starting a quote online, which could include legal expenses insurance.