Commercial Legal Expenses Insurance can be relevant to businesses that could face unexpected legal disputes and do not want to fund all legal costs directly from cash flow.

It can be particularly useful for businesses that:

• Employ staff.
• Enter into contracts with customers or suppliers.
• Lease or occupy commercial premises.
• Rely on statutory licences or approvals.
• Could face ATO investigations or disputes.
• Do not have an in-house legal team.
• Regularly deal with unpaid invoices or contractual disagreements.

Is Commercial Legal Expenses Insurance only for large businesses? #

No. Small and medium businesses can face the same types of legal disputes as larger organisations, but may have fewer internal resources available to manage them.

A relatively straightforward employment, contract or property dispute can still generate significant legal costs.

Does every business need it? #

Not necessarily.

Whether the cover is worthwhile depends on factors such as:

• The number of employees.
• The volume and type of contracts entered into.
• The business’s exposure to employment disputes.
• The likelihood and potential cost of commercial disagreements.
• Existing insurance arrangements.
• Whether similar legal costs are already insured elsewhere.
• The business’s ability to fund legal advice and representation itself.

How does it fit with other business insurance? #

Commercial Legal Expenses Insurance is generally intended to complement rather than replace policies such as Professional Indemnity Insurance, Public & Products Liability Insurance and Management Liability Insurance.

Each policy responds to different types of risk, and there can be some overlap depending on the wording.

Contact Webber Insurance if you would like help considering how Commercial Legal Expenses Insurance fits with your existing insurance program.