Business legal protection
Business legal protection is a specialized type of commercial insurance that covers legal costs arising from disputes involving your business operations. Business legal protection policies provide coverage for attorney fees, court costs, and settlement expenses in cases such as contract disputes or employee litigation.
Insurers like The Hartford and Travelers typically include business legal protection as an endorsement or part of a broader package policy. Policyholders may receive access to legal advice hotlines and document review services through their business legal protection plans.
U.S. Businesses often face lawsuits, with over 36% experiencing litigation annually, making business legal protection vital for controlling legal risk exposure.
Covered claims can involve employment disputes, debt recovery actions, property damage defense, or tax investigations handled by IRS agents. Exclusions under these policies commonly include criminal acts and prior known circumstances, which means incidents before the policy effective date are not covered.
Premiums for business legal protection average between $200 and $1,000 per year, depending on business size and industry risk factors such as professional services or retail operations. Coverage limits usually range from $10,000 to $250,000 per claim or policy period among major insurers such as Hiscox and Chubb.
Business owners must carefully read all endorsements to understand sublimits applied to specific risks like regulatory investigations or landlord-tenant disputes, as detailed by the Insurance Information Database.
What is employers’ liability insurance?
Employers’ liability insurance is an insurance policy that covers employers from costs associated with employee injury or illness incurred during the course of their employment. The policy protects employers from the financial and legal repercussions that can occur when a worker suffers injury or illness as a result of their job. It provides indemnity for…
What is litigation insurance?
Litigation insurance is a type of insurance coverage that protects businesses from legal claims resulting from disputes and lawsuits. It may cover the costs associated with defending against, or settling, such claims, as well as any damages awarded to claimants. The coverage can also extend to third-party claims brought against the insured business by a…
See also Business liability.