Prepaid Legal Insurance

What Does Prepaid Legal Insurance Mean?

Prepaid legal insurance is a legal insurance policy paid for in advance. It protects individuals from potential losses incurred while working with an attorney.

Insuranceopedia Explains Prepaid Legal Insurance

Many businesses face lawsuits, even if they operate diligently. For example, a customer might sue a company for selling a faulty product, or a competitor might file a lawsuit over alleged intellectual property infringement. Prepaid legal insurance can help businesses manage the legal costs associated with these lawsuits, covering attorney’s fees without the need to pay out of pocket. Businesses often carry it alongside general liability insurance for product-related claims and professional liability insurance for disputes involving services or intellectual property.