Commercial disputes are a common occurrence and can arise from a wide range of circumstances. In today’s economic climate, the legal costs associated with litigation and dispute resolution are more significant than ever. Potential litigants must carefully consider not only their own legal expenses but also the risk of being liable for the opposing party’s costs. Access to professional legal representation is essential when pursuing legal actions of this nature.

For businesses, the likelihood of facing legal action is considerably higher than for individuals. Commercial Legal Expenses Insurance (LEI) offers a practical solution, enabling businesses to pursue legal claims without the burden of potentially high legal fees. Commercial Legal Expenses Insurance covers legal costs and provides access to legal advice while safeguarding your business from the financial impact of disputes.

Choosing whether commercial LEI or an alternative form of insurance is appropriate for your situation requires informed guidance. At Annecto Legal, we support our clients in navigating the complexities of legal expenses insurance and securing the most suitable coverage for their needs.

What is commercial legal insurance?

Commercial Legal Expenses Insurance (LEI) is designed to support businesses by providing access to legal services and covering the costs that may arise during a dispute or when pursuing legal action. In many cases, this insurance is arranged on an After-the-Event (ATE) basis, meaning it is secured once a legal issue has already arisen.

A key benefit of commercial LEI is that it helps protect businesses from the financial risk of having to pay the opposing party’s legal costs if their case is unsuccessful.

While there is usually an upfront premium associated with this type of insurance, in certain situations, payment can be deferred until the conclusion of the case. In such instances, the premium is often only paid if the case is won, using a portion of the recovered funds.

Many businesses opt to include legal expenses cover as part of a broader insurance package. ATE insurance can provide commercial legal protection across a wide range of legal actions. These include commercial contract disputes, intellectual property issues, employment disputes and employer liability, professional negligence claims, and employment tribunal proceedings, among others.

What are the benefits of commercial legal expenses insurance?

Commercial Legal Expenses Insurance (LEI) offers several advantages for businesses pursuing legal action, including:

• Greater confidence in pursuing claims – Businesses can pursue claims more assertively, knowing that potential financial risks are mitigated.
• Protection against adverse costs – If the case is unsuccessful, the policyholder is typically safeguarded from having to pay the opponent’s legal costs.
• Cover for interim cost orders – Depending on the policy, LEI may also protect against interim cost awards and expenses arising from interim hearings.
• Enhanced settlement leverage – The presence of commercial LEI policy can encourage opponents to settle, as it signals that the claim has been assessed by the insurer and is considered to have strong prospects of success.

Who can Annecto Legal assist?

Although Commercial Legal Expenses Insurance is most commonly used by claimants, it is available to any party involved in litigation. It can be arranged either before legal proceedings are issued or at a point thereafter. However, securing cover after proceedings have begun can lead to higher premiums and make finding suitable insurance more challenging.

Commercial LEI offers a valuable solution for clients with limited financial resources, enabling them to meet potential cost liabilities that might otherwise prevent them from pursuing a claim. At Annecto Legal, we take pride in delivering expert, professional support at market leading rates for clients seeking this type of cover.

For small businesses, in particular, the threat of an adverse costs order can be a major barrier to litigation. After-the-Event (ATE) insurance ensures they are better positioned to pursue claims against larger, better funded opponents on a more equal footing. This is especially useful for cases related to unfair dismissal, liability insurance, or health and safety compliance.

Annecto Legal works with both large corporates and small businesses with commercial legal expenses insurance to enable access to justice as well as the 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.

Get in touch with us today on 0800 612 6587 or by using our contact form below.