Legal defence costs insurance
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Legal problems aren't always part of the plan when you're running a trade business. But if you have to defend yourself against certain proceedings, the costs can soon add up.
Legal defence costs insurance can help with the cost of defending certain insured claims and specific legal proceedings covered by your policy.
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What is legal defence costs insurance?
Legal defence costs insurance doesn’t cover every legal problem your business might face.
Instead, it can help with the cost of defending certain claims where the underlying event is already covered by your policy. It can also apply to specific types of proceedings set out in the policy.
For example, legal defence costs cover can include:
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Defending insured public liability, products liability, and professional indemnity claims
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Health & safety prosecutions, subject to specific conditions
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Consumer protection prosecutions, up to £25,000
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Corporate manslaughter and corporate homicide proceedings, up to £2 million and within the liability limit
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Data protection proceedings, up to £1 million
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Certain investigations linked to professional indemnity, up to £10,000 in aggregate and subject to the relevant conditions
This policy is distinct from general business legal expenses insurance. It doesn't provide general cover for contract disputes, tax investigations, employment disputes, debt recovery or property disputes.
The exact circumstances, limits and conditions vary depending on the section of your policy involved. For the full details of what's covered and the conditions that apply please refer to policy wording.
Running a trade business isn't just about getting the job done. If something goes wrong and you face a legal proceeding, there can be costs involved in defending your position. For a sole trader or contractor, paying for legal support yourself can be a significant business expense.
Legal defence costs insurance can apply when the matter is connected to an insured claim or falls within one of the specific proceedings covered by your policy.
For example, this could mean help with eligible defence costs following a covered liability claim, or certain health and safety, consumer protection or Data Protection proceedings.
This cover isn't a catch-all for every dispute. If you're unsure whether a particular situation is covered, your policy wording sets out what applies.
What does legal defence costs insurance cover?
Legal defence costs cover can help with the cost of defending your business in certain legal situations covered by your policy.
This includes costs linked to insured liability claims, as well as specific types of prosecutions and proceedings.
Here's a closer look at some of the support available:
Defending an insured liability claim
If someone brings a claim against your business and it's covered by your public liability, products liability or professional indemnity insurance, the policy can cover the costs of defending that claim.
Health & safety prosecutions
There are specific conditions around when this applies, including a link to an event involving personal injury that is or may be covered under the policy.
Consumer protection prosecutions
Cover can also apply to certain criminal proceedings under the Consumer Protection Act 1987.
The maximum payable for this extension is £25,000, subject to the policy terms and conditions.
Corporate manslaughter and corporate homicide
The policy includes specific cover for certain proceedings under the Corporate Manslaughter and Corporate Homicide Act 2007.
The maximum payable is £2 million in any one period of insurance. This limit forms part of, rather than being added to, the relevant liability limit.
Data protection proceedings
The policy can cover certain legal costs and damages arising from data protection proceedings.
The maximum payable is £1 million in any one period of insurance, subject to the policy terms and conditions.
Certain regulatory investigations
Professional indemnity cover includes limited protection for certain official examinations, enquiries, investigations or proceedings.
This only applies where the circumstances could otherwise give rise to a claim covered by the professional indemnity section.
The maximum payable is £10,000 in aggregate, subject to the policy terms and conditions.
For the full details of what's covered and the conditions that apply please refer to policy wording.
Who is legal defence costs insurance for?
Legal defence costs insurance can be useful for businesses with employees, but who don’t have legal expertise in-house.
It can also be relevant to sole traders and contractors. You don't need a legal team of your own to run a trade business, but you may still find yourself dealing with proceedings that relate to the work you do.
The important thing is that the matter must fall within one of the areas covered by your policy. It's always worth checking exactly what the policy covers rather than assuming it provides general cover for any dispute.
What isn't covered?
Legal defence costs cover has a specific purpose. It isn't a general policy for every disagreement or legal problem that could affect your business.
For example, it doesn't provide general cover for:
✘ Contract disputes
✘ Tax or HMRC investigations
✘ Employment disputes or employment tribunals
✘ Debt recovery
✘ Property disputes
If a matter isn't covered by the relevant section of your policy, legal defence costs cover won’t apply to it.
There's no standard price for legal defence costs insurance.
As this cover forms part of your wider trade insurance, the overall price of your policy depends on your business and the cover you've selected.
If you're looking at legal defence insurance for your trade business, getting a quote will show you the price based on your circumstances.
There isn't a separate price to pay for the standard legal defence costs element of the policy.
How to get legal defence costs insurance
Legal defence costs insurance is included as standard across our trade insurance policies, so there's no separate application needed.
Here’s how to get legal defence costs cover, step-by-step:
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Get your trade insurance quote
Tell us about your business and the work you do to get a personalised quote.
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Your legal defence costs cover is included
The standard legal defence costs cover is included automatically as part of your trade insurance policy.
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Review your cover
Check the cover and policy details before completing your purchase.
Already have a policy with us? Get in touch with our team if you have a question about the cover included with your policy.
Get your legal defence costs insurance quote today
Legal defence costs cover can help if your business faces certain insured claims or specific legal proceedings.
It's included as part of our trade insurance policies, so there's nothing separate to arrange for the standard cover.
Choose the cover that fits your business and get a personalised quote.
✔ Defending certain insured liability claims
✔ Health & safety prosecutions, subject to specific conditions
✔ Consumer protection prosecutions up to £25,000
✔ Corporate manslaughter and corporate homicide proceedings up to £2 million (within the liability limit)
✔ Data Protection proceedings up to £1 million
✔ Certain regulatory investigations linked to professional indemnity
Public liability insurance
Public liability insurance can help protect your business if you're legally liable for accidental injury to someone else or damage to their property.
It's also one of the main areas where legal defence costs cover can apply when an insured claim is made.
Jury service insurance
Jury Service cover can provide a daily payment if an insured person has to attend court for jury service.
It's an optional extension that can be added to your trade insurance policy.
Tradesman insurance
Professional indemnity insurance can provide protection for certain claims arising from business services, including negligent acts, errors or omissions.
Legal defence costs insurance can apply where circumstances are covered by the professional indemnity policies.