Commercial Legal Expenses Insurance can help a business manage the cost of certain legal disputes and legal proceedings that may not be covered by its other insurance policies.

Depending on the policy, cover can include legal costs associated with matters such as:

• Employment disputes.
• Commercial contract disputes.
• Property or tenancy disputes.
• ATO tax investigations or disputes.
• Statutory licence matters.
• Certain regulatory or criminal prosecutions.
• Breaches of restrictive covenants by employees or former employees.

Some policies can also provide access to legal advice or assistance before a dispute develops into formal proceedings.

How is Commercial Legal Expenses Insurance different from liability insurance? #

Liability policies generally respond when a claim is made against the insured for a liability covered by that policy. Commercial Legal Expenses Insurance can operate differently and may cover the cost of pursuing or defending certain legal disputes, depending on the policy section involved.

For example, a business may need legal assistance to pursue an unpaid debt, resolve a commercial contract dispute or defend an employment-related proceeding. These costs are not automatically covered by Public Liability, Professional Indemnity or other liability policies.

Is every legal dispute covered? #

No. Commercial Legal Expenses policies contain specific insured events, exclusions, limits, excesses and conditions.

Cover can also depend on matters such as:

• When the dispute or circumstances first arose.
• Whether the matter existed or was known before the policy started.
• Whether the insurer has approved the legal action and associated costs.
• Whether the claim has reasonable prospects of success, where the policy requires this.
• The type of dispute and the relevant policy section.

Businesses should not assume that any legal bill will automatically be insured.

Contact Webber Insurance if you would like to discuss whether Commercial Legal Expenses Insurance may be suitable for your business.