Legal Expenses Insurance

An Introduction

Legal Expenses Insurance protects your interests in the event of legal disputes and covers the costs of solicitors, court proceedings and in some cases damages paid to claimants.

Legal Expenses Insurance is sometimes referred to as Professional Fees Insurance and can extend to covering the professional fees of other professionals including accountants.

There are three main types of Legal Expenses Insurance; Motor, Personal and Commercial as well as other specialist areas including Intellectual Property, Landlord & Tenant and Claims Specialist Fees cover.

Traditionally Legal Expenses Insurance is taken out Before the Event (BTE) to cover unforeseen events occurring sometime in the future. More recently where an incident has already occurred After the Event (ATE) cover is also available to cover solicitor’s costs in the event of the case failing.

To find out more about our classes of business and how we can work with you and your clients please take a look at our Products & Services section.

A Brief History

Traditionally Legal Expenses insurance has been perceived as an invention of our European neighbours. Until becoming legal to underwrite this business in the UK in 1967, the majority of business written on the Continent was of a personal lines nature.  Prepaid commercial legal expenses insurance is essentially a UK innovation.

The commercial opportunities of the first Health and Safety Legislation and new Employment Legislation emerged in 1977. Motor uninsured loss recovery was removed from the packaged personal lines products and offered as an extension to motor insurance. This coincided with legal expenses insurance being added on to household policies with the introduction of 24/7 legal advice lines. Landlord legal protection developed also in the mid seventies providing cover and other specialist covers including intellectual property and electoral fees insurance.

Composite is proud of its ability to consider in a bespoke manner the variety of traditional and unusual legal expenses covers that may be sought by businesses and individuals.