Why commercial legal expenses cover is a must-have

Businesses nowadays are facing a rising risk of being sued, or conversely, needing to take legal action themselves. You can’t fight a legal dispute or pursue a lawsuit without some funding available to cover the often astronomical litigation costs, so what options are available?

Professional insurance with commercial legal expenses cover is the solution, one that many smaller businesses owe their survival to. It’s all about protecting yourself and your business (which you have no doubt worked tirelessly to establish) against risk. As you can’t predict the future, you need to ensure you are covered on all quarters.

How much could a legal dispute cost me?

The cost of a lawsuit against you is made up of a number of aspects, namely; fines, compensation or settlement payouts and Solicitor’s fees. All of these aspects can add up to a cost your business can’t afford to pay without insurance cover, especially in situations where cases run on for months.

The number of legal disputes in the UK is rising; there were 25 per cent more tribunal cases in 2009 than in the year before. If you were involved in one of the 115,039 legal disputes last year and lost, you would find yourself paying out as much as £60,000. Furthermore, in cases where gender discrimination was alleged, the maximum payment award was more than £217,961. Could your business afford to pay this?

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