Professional business insurance has become commonplace these days, with everyone from small businesses to large corporations taking out policies to protect their buildings and contents and professional indemnity insurance to cover errors, omissions and professional neglect . These kinds of insurance are essential, but what about cover for legal expenses?
The expensive costs incurred from lengthy and sometimes unexpected litigation can cause more damage to your business than you’d care to imagine. As modern society seems to have adopted a ‘lawsuit culture’, all businesses are at risk, meaning that all could also be forced into bankruptcy or insolvency.
If you can’t afford an in-house lawyer or employment law specialist (which, in reality, most businesses can’t) then this sort of policy is a viable option. If your business takes out this kind of insurance, you will be covered for the costs of legal expenses incurred whilst fighting a number of complaints against you. These include:
• Employee disputes (sexual harassment, discrimination, unfair dismissal etc)
• Tax investigation
• Contractual disputes
• Legal defence against prosecution
If you have business insurance already, you will understand why this sort of policy makes sound business sense.