Legal Expense Insurance: Are you thinking about worst case scenarios?
When looking at insurance policies, no one thinks about the worst case scenarios. Most individuals look for the cheapest option available without understanding what the true value of an insurance policy is. Often times, the difference between an insurance policy that will cover $5000 in damages and another that will cover $50,000 in damages is $7 a month. Today you can get a latte for $7 at Starbucks. Hence it is important for individuals to make informed and logical decisions. Legal Expense Insurance is one area that started to develop in 2010, however, everyone does not understand what it truly means and how beneficial it can be to individuals, small business owners or landlords.
Legal expense insurance (LEI) is a helping tool for individuals to defend or pursue legal action if they are considering litigation. If an individual has legal expense insurance coverage, they can typically get legal advice and guidance and the costs of pursuing legal action depending on every situation.
As per the 2010 Canadian Lawyer Magazine Survey, the average hourly cost of a lawyer is $360/hour, the cost of a one-day criminal trial is $5,000, and the cost of a two-day civil trial is $26,444. With skyrocketing legal fees, many Canadian can’t afford a lawyer or are simply discouraged to litigate. Legal Expense Insurance (LEI) can help these individuals plan for worst case scenarios.
Small business owners
LEI empowers business owners to defend or pursue their legal rights and improves access to justice. As a small business owner, you might have many responsibilities on your plate. As much as you want to grow your business, it is also important to protect yourself in the worst case scenarios. LEI will protect the business from costly legal expenses and will empower owners to defend or pursue their legal rights
Landlord Legal Expenses Insurance provides legal advice and legal costs in the event a dispute arises relating to your property. For example, you can benefit from having legal expenses insurance if a tenant damaged your property, if you need to evict your tenant(s), or if you wanted to seek unpaid rent. It is important for the landlord to consider this option as it will give them more power to control their properties.