Also known as legal protection insurance (LPI) or simply legal insurance, is a type of insurance which covers you against the expensive costs of legal action brought by or against the policyholder.

Legal expense insurance provides more affordable coverage for the legal fees charged (including expenses incurred) by a lawyer representing the policyholder in usually legal matters.

These can include employment disputes, litigation, disciplinary actions, human rights complaints and criminal charges. In addition to liability insurance against certain kinds of legal liability, legal expenses insurance can also offer coverage for predictable events such as the drafting of a will or power of attorney, and simple legal advice.

The concept originated around 1911 as a result of a fatal crash at the famous Le Mans race during which some spectators lost their lives and others were severely injured. When the victims or their families claimed damages from the insurers of the organizers, their claims were repudiated. They then all contributed to a pool which was used to fund collective action against the insurers. They were successful.

This gave rise to the first LEI policy being developed in France. Members of the general public then enquired about joining the scheme. That is when the idea of an insurance available to the general public became firmly established.