Legal disputes are often costly and stressful to pursue or defend. Many people are deterred from taking legal action because of the financial risk and uncertainty of the outcome. This is where legal expenses insurance (LEI) can help.
Unlike conventional insurance, LEI does not make a direct payment for a claim. Instead, the insurance covers the legal costs involved in pursuing or defending a claim. Legal costs include the appointment of solicitors, barristers and expert witnesses. In many cases, the LEI provider manages the claim from start to finish.
Businesses of all sizes have to operate in an increasingly complex legal environment. Recent years have seen significant rises in business legislation in both Ireland and Europe. Keeping up with the latest changes can be a full time job for solicitors and legal expenses insurers.
The cost of defending your company’s legal rights is also increasing, with few organisations able to afford the luxury of an in-house lawyer. Even the cost of dealing with relatively minor problems can easily run into thousands of Euros, and this does not include the amount of management time wasted or stress caused by such matters.
Growing public awareness of legal rights and an increasing willingness to take legal action against an organisation compound the risk faced by businesses in Ireland today.
Legal fees, compensation awards and assessments following revenue audits can all undermine the financial stability of your business. In this changing commercial climate, a wide ranging legal expenses insurance policy is essential if your company is to protect itself against all the potential legal costs it may face.