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Legal expenses insurance

Cover against your company’s unexpected legal expenses.

Essential insurance for new entrepreneurs

Legal expenses insurance should be taken out immediately after starting your business in order to include potential disputes from all contracts in the scope of insurance.

Avoid costly legal expenses

Your company's interests can be protected through legal channels without needing to pay expenses from business profits.

Also covers employment disputes

Employment contract disputes are some of the most common reasons for entrepreneurs to require legal advice.

Take out legal expenses insurance to protect your company against disputes

Your business operations may become involved in a variety of disputes requiring legal advice. As the costs of legal proceedings and legal advice may be high, it is sensible to prepare against unexpected costs with legal expenses insurance. It provides financial security and is an essential part of your company’s business liability insurance.

Legal expenses insurance allows you to prepare at reasonable cost for the costs of legal advice and legal proceedings in civil and criminal cases. Your company's interests can be protected through legal channels without your needing to pay the incurred costs from business profits. You can use the insurance in cases that are processed in Finland in a district court or arbitration proceedings.

The average costs of a company's legal expenses loss is between 6,000 and 8,000 euros.

Legal expenses insurance should be taken out immediately when setting up your business

If you are just starting your business, you should take care to ensure that your company’s legal expenses insurance is valid before agreeing your first contracts.

Typical contracts related to business activities include employment contracts and leases of facilities and equipment. Even in these cases, disputes are possible and your company may require legal advice. 

As an entrepreneur, you should keep in mind that legal expenses insurance does not cover contracts that you have signed before taking out the insurance. Therefore, it is important to take out legal expenses insurance at the very start of business operations and never allow its validity to expire.

Our corporate legal expenses insurance is suitable for many different industries and nearly all small and medium-sized enterprises in Finland. The price of legal expenses insurance depends mostly on the company’s line of business and total salaries.

The expenses of a single minor dispute may already be devastating. Legal expenses insurance gives your company a budget for legal costs.

Heidi Haavisto Underwriter, Pohjola Insurance

What does corporate legal expenses insurance cover?

Legal expenses insurance compensates for the costs of legal advice and legal proceedings in civil and criminal cases related to the company’s activities. The insurance typically covers expenses that arise in disputes over the termination of an employment contract or the company’s billing.

Examples of disputes where the costs of legal advice and legal proceedings are covered:

  • The company has sent an itemised invoice for an agreed earthmoving job, but the client claims it to be partly unjustified and too high. The client files a written complaint about part of the invoice and refuses to pay the entire invoice. The company hires a lawyer to negotiate with the client and settle the matter out of court.
  • An employee is prosecuted for embezzlement of the company’s cash funds. As the injured party, the company may demand compensation from the accused in court.

For more information, see the Legal expenses insurance product guide and insurance terms and conditions.

Remember also to insure your company’s real property and vehicles and any statutory insurance, such as workers' compensation insurance for your employees. If you are just starting your business, you should also take care to ensure that your liability insurance is valid. We will gladly go over your insurance needs with you and help you choose a suitable insurance solution for your company. Leave your contact details using the offer request form below!

Nainen selaa kannettavalla tietokoneellaan tietoja tilanteista, joissa vastuuvakuutus on hyödyksi.
Liability insurance
Business liability insurance covers your company in case of indemnification liabilities.
Kaksi miestä puhuvat aiheesta keskeytysvakuutus.
Business interruption insurance
Secure the continuity of your company’s business and also prepare for additional expenses in exceptional circumstances.
The insurer is Pohjola Insurance. The losses will be covered in accordance with the law and the insurance terms and conditions.