COMMERCIAL LEGAL EXPENSES

17th April 2008

The Arc team regularly provides media comment on relevant issues. Below is from an article published in the insurance trade publication, Post Magazine, on Commercial Legal Expenses.

LEGAL GUARDIANS

As employment law changes once again, employers could find themselves unknowingly exposed to new risks. Unfortunately, pleading ignorance is no defence but legal expenses intermediaries can offer clients advice and the chance to indemnify themselves against future problems, writes Marcus Alcock

Frank O' Malley, director at intermediary Arc Legal Assistance, agrees: "Unlike larger organisations, small businesses do not tend to have the time, resources nor expertise in-house to enable them to cope with the complexities of employment legislation. Recent changes in the law do indeed add to that burden. By making legal expenses insurance available to the client, the intermediary is giving the small business access not only to indemnity, in respect of legal costs when things go wrong, but also to expert legal advice that is a core benefit offered by the majority of providers."

As such, he claims, legal advice lines provide clients with the information they need to help them make the right decisions when faced with problems that could potentially impact on their business - a key area clearly being employment law. "If the wrong dismissal procedures are followed, a small business could be faced with a crippling award against it at tribunal," explains Mr O'Malley. "Access to the right legal advice can help prevent such an outcome."

The full article can be found at www.postonline.co.uk