Legal Expenses Insurance – Is it Worth It?

Here at Rhino Trade Insurance, we speak with self-employed tradesmen and women every day, and often the same questions come up. We understand that taking out business insurance is a decision that should not come lightly, so we wanted to address some of the frequently asked questions we receive from our customers.

As a self-employed professional, the main reason why insurance should be considered is to provide a financial safety net in the event that you or your business’ actions results in financial loss. This basically means that if something happens to your business that was outside of your control and would usually cost a lot of money (fixing a wall you accidentally knocked down or replacing your toolkit that has been stolen to name a couple of examples) instead of you having to put your hand in your own pocket, you will instead make a claim on your insurance policy.

What is Legal Expenses Insurance?

Take Legal Expenses Insurance, one of the most common ‘add-ons’* here at Rhino. As a self-employed business owner, there may come a time where you are considering legal advice or legal action. And, throughout the course of your career the need to hire a solicitor or gain information regarding a legal matter is possible. In these instances, having Rhino’s Legal Expenses Insurance in place would cover these costs.

*An add-on policy as we call it is a policy that a customer takes out alongside their Public Liability Insurance.

When would I need Legal Expenses Insurance?

Legal Expenses Insurance is not a legal requirement, so we’d be hesitant to say that you ‘need’ cover, but it can be valuable to have in the event that you wish to seek legal advice or wish to carry out legal action. An example of this would be in the case of debt recovery; say an awkward client is holding back payment for a job you’ve carried out; you may wish to seek legal advice on the matter and perhaps have a solicitor draft and send a legal letter challenging your client’s stance. Without Legal Expenses Insurance in place, you’d need to fund this yourself, and bearing in mind some solicitors in the UK charge £250 an hour plus, things could get costly.

What does Legal Expenses Insurance cover?

Rhino’s Legal Expenses Insurance covers the policyholder up to £50,000 in legal fees, defence and representation. This defence and representation can be as little as a legal letter drafted and sent, and as high as high court representation as long as the costs remain within the limit of cover. It also provides free legal advice for the policyholder, giving them expert and valuable advice if they ever require reassurance or clarification. The policy is excess free meaning that if a policyholder made a claim, they wouldn’t have to pay any additional fees.

So, there you have it, Rhino’s Legal Expenses Insurance in a nutshell. The cover is invaluable in the event that you’d need to make a claim, and having the policy in place provides peace of mind to any self-employed tradesman or woman. Insurance is of course something that any tradesperson must give care and thought over before taking out, so please give us a call if you have any further questions regarding Legal Expenses Cover or, if you've read enough and want the additional business protection, get yourself a quote. Always remember, it’s better to have insurance in place and not need it, than need it and not have it!