Legal Expense Insurance

Legal Expense Insurance for Business

Binks Insurance Brokers Limited is pleased to announce our association with DAS Canada Legal Expense Insurance, and the launch of a new product for Canadian businesses.

Wouldn’t it be great if operating your business was as straightforward as providing the best product or service, and striving to exceed your customers’ expectations?

But it’s not. Canadian businesses of all sizes are faced with the overwhelming task of keeping up with legislation changes. And that’s not all: there are disputes with employees, tax investigations, health and safety concerns… the list goes on.

The cost of dealing with these issues (not to mention the time involved) add up fast. Combine that with the financial risk and uncertain outcome of pursuing or defending your legal rights, and it’s no wonder that many business owners decide against legal action.

That is, if they don’t have the confidence and security that comes with a DASbusiness Legal Protection & Advice policy – one designed to protect businesses against the cost of potential business legal disputes.

This policy guarantees business owners access to legal guidance, representation and cost coverage. What’s more, policyholders can also simply pick up the phone to access the Legal Advice Helpline on any business-related legal matter (including tax advice) from 8am until midnight, seven days a week. It’s an emergency? We’ve got you covered; we’re here 24 hours a day if you need us.

Your policy includes:

  • Employment disputes;
  • Legal defence;
  • Statutory license protection;
  • Property protection;
  • Bodily injury; and,
  • Tax protection;
  • Court attendance expenses; and,
  • Telephone legal advice.

You can also add contract disputes and debt recovery coverage.

We invite you to review cases showing how business owners can access affordable justice thanks to their DASbusiness policy.

Employment Disputes
ABC Company, a DAS policyholder, was a small business with no HR department. An employee was found to be looking at computer files that were confidential and beyond the scope of his authority and role. Unsure of how to proceed, the company called DAS’ Legal Advice Helpline for guidance and was provided with assistance. Following the receipt of the advice, the company removed access to the files and gave him an appropriate warning. Sometime later, it was found that the employee had restored access to the files and was still looking at them. ABC Company dismissed the employee. The employee claimed for wrongful dismissal alleging that proper warning had not been provided nor proper disciplinary steps followed. ABC Company again contacted DAS who assessed the claim and concluded it appeared that all proper steps had been followed in dealing with the employee. The matter was referred to defence counsel who entered into negotiations with the dismissed employee’s lawyer and resolved the case in the company’s favour. DAS paid all the legal fees and provided the initial advice with regards to proper disciplinary actions.

Contract Disputes (optional coverage)
DASbusiness policyholder, 123 Construction was a residential home builder.  They had a first time contract with a lumber supplier who was new to the market, to supply wood for the framing of new homes.  The contract specified that the wood was to be delivered to the construction site on a specific date and that the wood would be in good condition suitable for framing.

On the specified date, the wood did not arrive and the supplier advised that it would be unable to provide the needed wood for at least two weeks.  123 Construction tried unsuccessfully to find a new supplier but could not do so with the result that the project was delayed.  Sometime later, the wood was delivered but unfortunately, it was infested with bugs and was unusable resulting in a further delay until suitable wood was delivered which the supplier indicated could take up to two more weeks.  123 Construction called DAS for help.

After assessing the case and agreeing there was a breach of contract, DAS appointed a lawyer to act on 123’s behalf. The lawyer immediately penned a letter to the supplier requesting that they deliver the needed wood immediately and pay compensation for delay of the project.  The supplier suddenly realizing the effect this situation could have on its ongoing business agreed to remove the unusable wood from the site and replace it with wood in good, useable condition right away.  The supplier also agreed to compensate 123 for all costs it might incur as a result of the delays.   DAS paid for the lawyer that helped get 123 Construction’s project back on track.

Questions & Answers

Q: Is LEI Coverage expensive?

A: No, not compared to perhaps having to borrow against your line of credit to pay unexpected legal bills.

Q: How much LEI coverage should we carry?

A: The DASbusiness policy has a limit of $200,000. Other limits are not available at this time.

Q: How do I apply for Legal Expense Insurance for Business?

A. Ask one of our professional Commercial Brokers about an LEI quotation prior to the next renewal of your commercial insurance program. You may be pleasantly surprised at how a properly constructed Legal Expense Insurance program can provide peace of mind that your business won’t face unexpected legal costs at an inconvenient time.

For more information please contact Geoffrey H. Binks , CAIB, CCIB (Ont.), Vice-President Commercial Division (613) 226-1350