Legal Expense Insurance Picks Up Where Liability Coverage Leaves Off

Legal Expense Insurance (LEI) protects your clients from the potential legal fees and expenses associated with their unique business activities. Providing indemnity for costs such as these is what differentiates LEI when it comes to specified legal matters not generally covered by commercial or professional liability insurance.

From South Western Group, Nov. 23, 2016

By partnering with providers like STERLON Legal Expense Insurance Specialists, South Western Insurance Group Limited is able to offer unmatched expertise in this increasingly important niche. Corinne Love, underwriter for the company’s Legal Expense portfolio, explains.

“SWG is able to work with brokers by serving as a conduit – as their LEI liaison, if you will – for answering questions and acting as a legal expense claims representative. We do a lot of problem-solving for our brokers to get them the solutions they need, and we have had fantastic feedback regarding the services that STERLON (specialists in LEI since 1993) provides on product development.”

Geared toward “insurance brokers with larger policy programs,” the company’s current LEI solutions involve a policy enhancement designed to safeguard professionals, association members, and small and medium-sized companies requiring legal representation or advice related to:

• Disciplinary proceedings,
• Tax disputes,
• Regulatory issues,
• Contract disputes,
• Criminal defence,
• Personal injury claims,
• Landlord and tenant disputes
• Human rights complaints, and
• Employment disputes (optional)

But the icing on the cake, according to Love, is that this coverage comes with the benefit of a Telephone Legal Advisory Service (TLA), which is provided as an integrated part of STERLON’s claims management services.

“Some associations have very limited access to cost-effective legal services,” Love explains. “If they are faced with a legal dispute or some other issue that they are unsure how to handle, rather than flying by the seat of their pants, they can call this number and say, hey, we have this issue arising – can we get some legal feedback on it?”

While South Western Insurance Group Limited’s LEI protects eligible businesses from legal costs, “Most of the usage,” says Love, “does not come from legal action. Most of it comes from the telephone advisory element because that is what helps prevent matters from escalating into expensive and time-consuming legal incidents down the road.”

The TLA service is toll-free and available to all LEI policyholders. Calls are unlimited in number and duration, and the service is staffed by legal professionals.

According to Love, “Policyholders can call with the most random question and gain access to a legal sounding board. The lawyer on the other end of the phone is knowledgeable, has a copy of the policy in hand, and is completely up to speed on relevant rules and regulations.”

Love agrees that one of the biggest benefits of South Western Insurance Group Limited’s LEI coverage is the risk management guidance it delivers.

“The professional relationships that allow us to provide Legal Expense Insurance coverage have been in place for many years now. As the focal point of that coverage, STERLON’s TLA service can help insured parties to solve problems before a claim actually occurs, with the added peace of mind that legal representation for covered matters is available if a dispute develops.”