Legal Expense Insurance
Definition - What does Legal Expense Insurance mean?
Legal expense insurance is a type of insurance that is purchased to cover expenses associated with various types of legal action.
This type of insurance is commonly purchased by businesses or individuals who believe that they have a very good chance of being sued. Without legal expense insurance, parties can be forced to pay out of pocket for attorneys.
Insuranceopedia explains Legal Expense Insurance
Lawyer fees can be extremely expensive, with attorneys commonly charging anywhere from $100–500 per hour. If an attorney has to work on a case for many hours to prepare for a trial, the expenses can add up very quickly.
Attorneys are unaffordable for many people unless they have legal expense insurance. With the insurance, however, the individuals and business can finance their legal fees if they get sued or need to issue a lawsuit.