Legal Expense Insurance

When a business owner is faced with one of society’s increasingly common legal problems, the cost of representation and lost revenue often cause them to think twice about whether to pursue their rights. The products provided through DAS can fill the gaps in traditional insurance liability policies, providing cost coverage and legal advice that can help avert a major disruption to a business’ activities.

How Legal Expense Insurance Can Work For You

The insurance policies provided through DAS can offer up to $200,000 worth of lawyer’s time and services, per claim, good for $1 million per year in the aggregate.  This coverage is ideal for many common business situations, whether involving a pursuit or defence of your legal rights.  In most cases there is no deductible and all policies include unlimited access to the DAS legal advice hotline.

Legal Costs by the numbers:

  • Potential cost of a two-day trial:                $37,000
  • Average length of a civil trial:                    25+ hours
  • Average hourly cost of a lawyer:               $379              
  • Average cost of a two-day civil trial:         $18,420

Legal Coverages Included

  • Legal advice helpline
  • Legal defence related to employment
  • Legal defence related to business activities
  • Business property protection
  • Bodily injury of the insured
  • Tax protection
  • Statutory licence protection
  • Contract disputes (additional premium)
  • Debt recovery (additional premium)

Premium is based on the annual revenue and payroll of the business. The minimum annual premium for a DASbusiness policy is $250 ($400 with contract disputes and debt recovery).

Examples of Claims:

Employment Disputes

  • An employee is dismissed from work for repeatedly being late and missing important meetings.  The individual commences a wrongful dismissal action alleging discrimination based on their hearing disability.  The policy will provide legal representation to defend the action on behalf of the business.

Legal Defence

  • A shopkeeper performed a citizen’s arrest on a shoplifter and was charged criminally.
  • An employee has been sued for allegedly failing to comply with privacy legislation.

Contract Disputes & Debt Recovery (Optional Coverage)

  • A printing company has printed substandard product and is refusing to honour its quality commitment.
  • A client incorrectly alleges that a company did not provide all the services agreed upon and has refused to pay.

Statutory Licence Protection

  • A restaurant inspector has cited a restaurant for serving an underage customer alcohol and suspended its licence.

Property Protection

  • A sports club rents the second floor of a building.  Foul vapours from the cabinetmaker on the ground floor are turning members away and threatening the sports club’s livelihood.  The policy will provide legal representation to take action.

Bodily Injury

  • A sales representative of a company injures themselves at a client’s premises while doing a presentation.

Tax Protection

  • The Canada Revenue Agency (CRA) requires proof from a business of the taxes they have paid in a past taxation year.  The CRA wants evidence that the input credits are accurate.

Unlimited Telephone Legal Advice

  • A company needs assistance with negotiations regarding the Workers Compensation Act.
  • A manager needs guidance on the legal aspects of having a disciplinary meeting with a poorly performing employee.