Legal expenses insurance: protection for individuals and businesses

The insurance covers the costs of lawyers’ fees, court costs, expert fees, and even bailiffs, allowing you to defend your rights without bearing the financial burden entirely, as these costs can quickly add up.

The insurance also reimburses the legal costs (so-called legal costs) of the opposing party in case you lose the lawsuit.

Legal expenses insurance is often taken out as additional coverage to another insurance (car, fire, family, etc.). The insurance is then applicable if the dispute is related to the main insurance: for example, you can call on your legal expenses insurance in the context of car insurance following a speeding violation or a traffic accident.

Legal expenses insurance can also be taken out as standalone insurance, for example, rental legal expenses insurance.

Benefits for individuals

For individuals, legal expenses insurance is an important guarantee. It allows you to seek legal assistance without worrying about the costs. An important advantage is the free choice of lawyer: you are not obliged to choose a lawyer from a specific list, but you can decide for yourself who represents your interests. This offers the necessary flexibility and security in sensitive or complex cases.

Benefits for businesses

Businesses are regularly exposed to contractual disputes, liability claims, or problems with employees. Legal expenses insurance not only covers legal costs but can also appoint a lawyer to provide advice to resolve disputes at an early stage. Like individuals, businesses also benefit from the free choice of lawyer. Moreover, legal expenses insurance is tax-deductible.

PKF BOFIDI Legal is here for you

Legal expenses insurance offers peace of mind to both individuals and businesses by protecting them against unexpected legal costs. The right to choose your own lawyer, combined with the coverage of legal costs, makes it a valuable tool for anyone who wants to be prepared for possible conflicts.

Do you have any questions about this? Feel free to contact our colleagues at PKF BOFIDI Legal. They will be happy to help you.

This article was written by Kirsten Pepermans, specialized in dispute resolution, litigation, and debtor management.