Also known as legal protection insurance, legal expense insurance is coverage that provides protection from any expenses that result from some sort of legal action against an insured party. Both individuals and corporations may choose to carry this type of insurance coverage. In some jurisdictions, professionals like lawyers, doctors, or nurses are required to secure and maintain some form of legal expenses insurance as part of the requirements for retaining certification or registration within that jurisdiction.
There are several different types of legal expenses insurance in common use today. One form is known as BTE or before the event insurance. This type of coverage aids in managing expenses such as attorney fees, filing fees and other types of court fees that are related to preparation prior to the event actually reaching a courtroom, as well as helping with expenses that occur during the life of the trial and into the settlement. A similar type of coverage, known as ATE or after the event insurance, is often secured after some event has occurred that is likely to result in a lawsuit; should the suit come to pass, the coverage aids with expenses, including settling any judgements awarded by the court.
Professionals of all types may choose to carry legal expenses insurance. Healthcare professionals who work directly with the public often have coverage that helps to cover the cost of any suits filed against them in relation to actions taken during the course of caring for a patient. General practitioners, surgeons, nurses, and dentists are a few examples. In addition, hospitals, clinics and various other types of care facilities may secure this type of coverage as a means of protecting the operation in the event of some type of legal action.
Along with professionals in the healthcare field, legal expenses insurance may be held by small businesses such as retailers or companies that produce goods sold directly to the general public. The coverage can provide assistance in managing expenses that result from legal actions connected with injuries within the store operations, or some type of damage that results from consumption of one of the manufactured products. Municipalities may also maintain legal expenses insurance as a means of managing expenses that are connected with defending the jurisdiction in the event that some sort of lawsuit is filed against the city or town.
While available in different formats in a number of nations, legal expenses insurance differs in the type of coverage that can be offered. Some nations place limits on the amount of coverage a particular type of company or business professional can carry. At the same time, nations who do allow this type of insurance to be sold will provide information regarding the pros and cons of legal expenses insurance. It is not unusual for regulatory agencies to also provide guidelines on who is eligible for the coverage, and a breakdown of what type of expenses are and are not eligible for coverage according to current government regulations.
