Legal Expenses

Legal expenses insurance is a policy taken out by individuals and businesses to cover outstanding legal costs associated with certain legal actions, such as gaining legal advice and/or the costs of bringing or defending a court case. Legal expenses insurance can be bought at two different stages:

Before the event – Usually taken out to cover a future legal action which needs to be fought or defended.


After the event – In this instance, the policyholder has already decided to take or defend a legal action and insure against any risks of losses and possibility of pay the other side’s costs.

It is worth noting, Legal expenses insurance is not obtained to pay the policyholder for any actual damage costs that they are aiming to recover through court action. Moreover, nor does it cover an individual’s liability to pay damages to others.