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Legal expenses insurance

Cover for the cost of pursuing or defending disputes.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

Legal expenses insurance covers legal costs for defined categories: employment, contract disputes, tax investigations, property and debt recovery.

Why it matters

It is inexpensive and it changes what is economically possible. A £15,000 contract dispute is often not worth pursuing without it.

What it looks like in practice

Cover is usually subject to prospects of success and to using the insurer's panel solicitors. Notification must be prompt.

What to watch out for

Assuming you can use your own solicitor. Most policies require the panel firm unless proceedings are issued.

Where to get proper advice

A broker. Check whether cover is already included in an existing package policy — many are and are never used.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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