LEI for Small to Medium-sized Businesses
The situations that can lead to legal action for small to medium sized businesses are surprisingly commonplace.
Commercial Legal Expense Insurance
Commercial Legal Expense Insurance (CLEI) is specifically designed for companies with annual gross sales of and/or receipts of $ 10,000,000 or less that do not typically have legal services on staff. Given the high cost of retaining a lawyer, these companies are often put in a position where they have to choose between jeopardizing their financial bottom line by incurring heavy legal expenses, or risking financial difficulty, even bankruptcy and closure, by failing to have proper legal representation.
More than a policy, CLEI is a complete service that gives companies immediate access to a lawyer, selected from an expert panel, whenever they need it. CLEI covers matters NOT covered by commercial liability insurance.
There are multiple ways this cover can be provided to companies, in a manner that best suits their insurance portfolio e.g. integrating into an existing policy or provided as a separate policy.
Summary of Coverage
CLEI means that no business, however small, should be prevented from exercising its full legal rights in a court of law. CLEI provides coverage for the costs incurred by a lawyer in areas of law not generally covered by other insurance. The following are the available Insuring Clauses.
1. Contract Disputes and Debt Recovery
Pursuit or defence of contractual disputes relating to the sale, purchase, lease or rental of goods or the provision of services (e.g. disputes with customers/suppliers, defence against claims of poor workmanship).
2. Employment Disputes
Defence of any dispute with an employee
(e.g. defence against wrongful dismissal charges, discrimination).
3. Criminal Prosecution
Defence of criminal or statutory proceedings
(e.g. Criminal Code (Canada), Occupational Health and Safety Act).
4. Property Disputes
Pursuit or defence of disputes relating to freehold/leasehold property including disputes following physical damage by a third party to that property
(e.g. landlord and tenant disputes, nuisance and trespass).
5. Personal Injury
Pursuit of claims for compensation relating to death or bodily injury sustained away from the workplace but while engaged in business activities.
6. Tax Disputes
Defence of a Tax Audit arising out of any tax return submitted to the Canadian Revenue Agency or other similar Canadian provincial agency.
7. Statutory Licence Protection
Pursuit of an Appeal following a decision of a licensing authority suspending, altering the terms, refusing to renew or cancelling the corporation’s operating licence.
8. Privacy Legislation Protection
Defence of the corporation’s failure or alleged failure to comply with the legislation.
9. Anti-Spam Legislation Protection
Defence of the corporation’s failure or alleged failure to comply with the legislation.
• Unlimited toll free telephone legal advisory service for the insured regarding any commercial matter.
Is Commercial Legal Expense Insurance right for your business?
What would you do if you were suddenly faced with defending your company against:
- Charges of wrongful dismissal?
- Human rights complaints or discrimination charges?
- Customer complaints?
- Claims of poor workmanship?
- Criminal actions?
What would happen if your company had to:
- Pursue an action against a negligent supplier?
- File a claim against a negligent landlord or destructive tenant?
Toll-Free Telephone Legal Advice
For added peace of mind, CLEI also provides policyholders with access to a toll-free Telephone Legal Advisory service. This service provides unlimited access to a lawyer for immediate advice on any business matter.
If the right steps are taken at the very start, problems can often be resolved quickly or a suitable compromise reached between the parties involved without costly settlements or long, drawn-out court cases that can take you away from the business of running your business!
Kristy (Shuk) Lai
South Western Insurance Group
105–21 Four Seasons Place
Toronto, ON
M98 6J8
P: 416-642-6975
TF: 1-800-668-4275 ext. 1237