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Commercial legal expenses insurance

Commercial disputes are common and can arise for a variety of reasons. The costs of litigation and dispute resolution are particularly relevant in the current economic climate. A potential litigant has to consider not only their own legal costs but also the potential exposure to the other side’s costs.

When running a business, you are much more likely to face legal action than an individual. Commercial legal expenses insurance (LEI) allows businesses the opportunity to pursue a case without having to worry about the legal fees associated with it. This insurance is designed to give you access to expert legal advice on legal issues whilst also protecting your business.

Determining whether commercial LEI cover or other forms of insurance policies are right for your case is important; therefore, it is essential to have an advisor on your side. At Annecto Legal, we can assist clients in understanding the finer points, as well as helping to secure the best deal.


What is commercial legal expenses insurance?


Commercial legal expenses insurance exists to aid business policyholders in obtaining advice for legal issues. It can also assist with any unexpected legal costs involved if they find themselves in a dispute or if they want to bring a case themselves. Most business legal expenses insurance is taken out as after the event insurance (ATE insurance).

Commercial LEI also provides protection against the financial exposure of having to pay an opponent’s legal costs if the policyholder is unsuccessful in their legal proceedings.

There is usually an upfront cost for legal expenses insurance. In some circumstances, however, payment of this insurance premium is deferred until the conclusion of the case, and clients may only pay for this premium from the funds received if their case is successful.

Typically, most businesses choose to add insurance cover for legal expenses to their existing insurance policy or package. Commercial ATE insurance can provide indemnity for a wide range of legal disputes, including commercial contract disputes, intellectual property disputes, employment disputes, professional negligence, employment tribunals and many more.


What are the benefits of using commercial legal expenses insurance?


Commercial LEI provides a number of benefits to parties looking to pursue a legal action, including: 

  • Claims can be pursued to their fullest extent as businesses do not have to be concerned about the repercussions due to risk mitigation 
  • It removes the risk of being made to pay the opponent’s legal costs if the dispute is unsuccessful 
  • It can provide protection from interim costs orders. Also, depending on the policy, expenses insurance may protect against adverse costs in interim hearings. 
  • The existence of a commercial legal expenses insurance policy provides the incentive for an opponent to settle as they know that the insurer has conducted an analysis of the merits of the case and its prospect of success.


Who can Annecto Legal assist?


Whilst commercial LEI is mostly used for claimants, any party to litigation is able to obtain it. It can be purchased at any time before proceedings have been issued or any time after, however purchasing after can result in higher premiums and can increase the difficulty in finding cover.

Commercial LEI allows clients of limited means who may not have been able to pay any order for costs previously the opportunity to do so. Annecto Legal prides itself on offering an experienced, professional service at market leading rates to clients who are looking to obtain this insurance cover.

Small businesses that may struggle to cover the costs of an adverse costs order may require after the event insurance to ensure that they are able to take on a more resourced opponent on level terms.

Annecto Legal assists both large corporates and small businesses with commercial legal expenses insurance to enable access to justice as well as the transfer of financial risk away from businesses’ balance sheets. We can also assist individuals with business disputes, as well as accountants, insurance brokers, solicitors and insolvency practitioners


How can Annecto Legal assist?


Annecto Legal helps clients realise the value of their commercial litigation claims. The quotation, application, costs and premium structures of commercial legal expenses insurance can be complex for those without experience. Therefore, we recommend that you get in touch with our team as soon as possible so that we can begin to give you the guidance that you require.

We provide our services to a range of clients. Contact an expert member of our team today to find out more about commercial legal expenses insurance and which commercial litigation cover is the correct litigation funding choice for you. Annecto Legal is registered in England and Wales.

Call us today 0800 612 6587, or our director, Mark Beaumont, can be contacted by email


Get in touch

* Annecto Legal can only assist on case where the loss is in excess of £100,000, with the exception of data breach claims. If you need assistance on a claim worth over £100,000, please get in touch using our form or the details below:

Registered Office

Annecto Legal Ltd, 106 Kennedy Building, Murray Street, Manchester , M4 6HS

London Office

71 Central Street, London, EC1V 8AB


0800 612 6587


Contact us directly