Is business legal protection worth it?
Sometimes I lie awake thinking about all the hassles that come with running a business. Of course, it’s fun and challenging to work as a self-employed person, but it’s also nerve-wracking. Because what happens if a client refuses to pay or takes me to court? Does it make sense to get insurance for that?
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Be reasonable
Of course, as a business owner, you face risks. But before you purchase business legal protection insurance, you should ask yourself just how significant that risk actually is. How large are the amounts you’re dealing with, and what is the potential damage? Legal protection insurance is always reactive. That means help is only provided once something goes wrong. You can also limit the risk you face by staying well-informed. For example, by joining a trade association. Or by attending workshops on drafting General Terms and Conditions or creating a watertight quote. You can also try to avoid a conflict by staying in touch. Be reasonable! Call your client if you suspect there are problems. Often, you can resolve the issue if you respond quickly and are helpful.
Protect Your Business
But a problem can still get out of hand—even if you do everything you can to prevent it. A lawyer can easily cost €150 per hour. And angry business partners are obviously not good for your company. So if you want to protect your business properly, it’s wise to purchase business legal protection insurance.
Legal Assistance
What exactly does business legal protection insurance cover? First of all, you can seek free legal advice by phone from the insurer’s legal experts. In more complex cases, the legal advisor will contact your client on your behalf. He or she can file an objection, negotiate, and even represent you in court. The costs of the proceedings and the opposing party’s court costs (if the judge rules against you) will be reimbursed. Any bailiff fees or expert witness fees will also be covered by this insurance.
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