Commercial Legal Expenses Insurance does not cover every legal problem or every legal bill incurred by a business. Cover is limited to the insured events, costs and circumstances described in the policy.

Common limitations can include:

• Disputes or circumstances that existed, or were known about, before the policy began.
• Legal costs incurred without the insurer’s approval where prior consent is required.
• Matters that fall outside the insured sections of the policy.
• Claims that do not satisfy any reasonable-prospects requirement in the policy.
• Fines, penalties or other amounts that are not insured under the policy.
• Costs above the policy limit or applicable sublimit.
• The policy excess or other amount the insured must contribute.

Some policies can also exclude or restrict particular types of disputes, industries, jurisdictions or legal proceedings.

Are pre-existing disputes covered? #

Generally, businesses should not expect a Commercial Legal Expenses policy to cover a dispute that was already underway or circumstances the business already knew could lead to a dispute before the policy commenced.

The exact treatment of prior circumstances depends on the policy wording.

Can I appoint a lawyer and send the bill to the insurer? #

Not necessarily.

Commercial Legal Expenses policies commonly include requirements about when a matter must be notified, who may be appointed to act, and when legal costs require insurer approval. Incurring substantial legal costs before checking the policy can affect whether those costs are recoverable.

Are fines and penalties covered? #

They should not be assumed to be covered. Some policies may insure certain defence or representation costs associated with regulatory matters, but that does not mean the resulting fine or penalty itself is insured.

What should I do before incurring legal costs? #

Notify Webber Insurance or the insurer as early as possible when a matter may fall within the policy. Early notification can help confirm whether the matter is insured and what steps should be followed before further legal costs are incurred.

Contact Webber Insurance if you are unsure whether a legal issue may be covered.