Commercial legal expenses insurance – a snapshot

Are your commercial contracts in this time fit for purpose, are they safeguarding your interests and delivering on your contracted outcomes?

Navigating through and keeping up with all current legislation can be complex, costly and time consuming for Australian businesses and employers.

The need for appropriate legal advice to pursue or defend certain classes of legal action by businesses is becoming a common occurrence. However, taking legal action to resolve disputes through the justice system can be both complicated and expensive.

Protecting your business against unforeseen legal events
Legal Expenses insurance is a tool for businesses to risk transfer the cost of legal advice and representation in courts and tribunals.

Businesses of varying sizes can procure this cover on a standalone basis. It may also be “added-on” as a supplementary cover to complement an existing Public, Statutory, Directors’ & Officers’ or Management liability policy.

Whilst this is not an exhaustive list, cover is available for legal costs and expenses arising from:
  • Contractual Disputes

  • Regulatory Appeals

  • Injury/Death of a Third Party

  • Statutory Licence Appeals

  • Employment Practice Disputes

  • ATO and Tax Investigations

  • Criminal Protection Defences

  • Identify Theft Pursuits

  • Property/Goods Damage

  • Compliance and Regulation

  • Employee Protection Disputes

  • Tenancy Disputes
Examples of Insured Events
Supplier Disputes

The Insured ordered raw materials for manufacturing a product. However, the supplier delivered damaged materials, and contrary to the supply agreement, refused refunding the money or sending new materials. The Insured is provided with legal representation to pursue appropriate compensation from the supplier.

Tenant Problems

The Insured business is renting an office space and receives an unjustified termination of their lease from the landlord (not in the terms of the rental contract) and wants clarity as to their rights and legal action available. The policy can provide the Insured with legal representation to safeguard their rights and entitlements under their current lease agreement.

Faulty/Damaged Goods

The Insured received delivery of faulty goods from a supplier, who takes legal action, as their invoice is refused payment. The policy provides legal representation to the Insured for defending the action taken by the supplier.

Statutory Licences

The Insured who operates a restaurant received a revocation notice of their license by the relevant authorities following allegations of hygiene guideline non-compliance. We can provide legal advice and representation to the Insured to defend the allegations and protect their business interest.
Steps you can take:
  • Review your business model in terms of risks associated with non-compliance with contractual arrangements and statutory regulations.

  • Determine whether coverage is available and is adequate under your existing insurance arrangements to address commercial legal expense costs.

  • Consult with your Bellrock representative to confirm adequacy of your current coverage and identify potential exposures. We can also assist with placement of adequate commercial legal expenses coverage based on your business exposures.