Also known as legal expenses insurance, legal expenses cover is a type of insurance protection that helps to manage the costs associated with defending the insured party in the event of some type of legal action. Within this context, the cover may focus on providing coverage for expenses incurred prior to the initiation of the action, or managing any expenses that arise after the legal action has commenced. Professionals and companies associated with a number of different industries and professions find that while this type of insurance is somewhat expensive, legal expenses cover can pay for itself very quickly in the event that the insured party is named as the defendant in some sort of civil suit.
There are two different types of legal expenses cover that is typically offered to consumers. One is known as before the event cover or insurance. With this type of coverage, costs such as attorney fees, fees charged by private investigators, and any type of filing fees assessed by the courts are covered under the terms of the insurance. Before the event legal expenses cover is sometimes available as a stand-alone plan that is paid annually, or may be bundled in with auto or home insurance for individuals.
A second type of legal expenses cover is known as after the event insurance. With this type of coverage, the focus is on expenses that have to do with the resolution of the legal action. For example, this cover would help with any disbursements required by the courts once a verdict is rendered. This includes paying the legal costs of the opposing party if that is so ordered by the court. While it is possible to carry both types of legal expenses cover, it is much more likely that an individual or company would carry one or the other.
The pros and cons of legal expenses insurance or cover are varied. On the one hand, the insurance coverage is important in many professions that interact with the general public as part of the normal course of doing business. Even one incident may be enough to justify the cost of insurance payments over a number of years. At the same time, the actual extent of legal expenses cover varies from one plan to another, making it necessary to make sure the terms and conditions are sufficient to provide adequate coverage in the event that some legal action is taken against the insured party. For this reason, it is important to compare plans offered by several different providers before choosing a specific provider.