July 26, 2019 by Adam Carlson
Lawsuits are one of the biggest concerns a business owner faces. Regardless of size, conservative mom & pop shops have many of the same exposures that larger corporations do.
The majority of business owners will carry Commercial General Liability Insurance. Contrary to common perception, this policy only protects the business when it is sued for bodily injury or property damage to a third party. Lawsuits most often stretch way beyond this and the potential for costly legal battles are on the rise. The average cost of a two-day civil action is over $30,000, not to mention the stress and impact on your business.
Don’t be on the hook for a costly legal bill. Find how to properly prepare for the two common legal disputes and how Legal Expense Insurance can mitigate your business’ liability in these cases.
1) Employment disputes
Today’s legal system provides more protection for employees than ever before. This is why legal cases are on the rise related to employment disputes, such as when a business owner is sued after the dismissal of an employee or a dispute between a business owner and its employee’s work contract.
2) Contract disputes & debt recovery
In the age of globalization, businesses have a growing network of service providers, sub-trades, and interwoven supply chains. Time and time again, retailers and general contractors continue to face disputes within this supply chain network. If one of these members fails to hold up their end of a contract, or refuses to pay for a rendered service, this can leave a business owner out of pocket for thousands of dollars.
How to protect yourself and business from these costly legal disputes
The insurance market provides a product, Legal Expense Insurance, that can help pay for costly legal bills in the cases listed above. An annual policy generally costs less than an hour sit-down with a lawyer should you ever have to retain one. An LEI will cover your business in an employment or contract dispute as well as in debt recovery, tax disputes, legal defence for criminal allegations, and much more. For many business owners, it’s worth the investment.
Don’t wait until it’s too late. Contact one of our insurance experts and obtain a free LEI quote to ensure proper coverage for you and your business.