Legal Expense Insurance

Legal Expense Insurance

Hiring a lawyer can be intimidating and expensive. Where do you even start?

When a small business owner is spending $500 an hour to seek legal representation, they can quickly find themselves choosing between going into debt or having no representation at all. This is where legal expense insurance can be useful.

Zen Man protected by legal advice insurance

Partnerships with over 50 leading Canadian insurance providers

Partnerships with over 50 leading Canadian insurance providers

Why Choose Zensurance?

We help Canadian small business owners save time and money by providing
a convenient and affordable way to buy business insurance.

Claims Examples


Problem: You conduct a system security analysis for a large financial company. Your client is unhappy with the report outcome and refuses to pay the $25,000 owed to you for your services.

Outcome: You call the Legal Helpline and are assigned a lawyer, who recovers $20,000 from your client, plus your insurance covered all of the legal fees.


Problem: The CRA audits your tax returns and contests numerous business expenses and deductions, leaving you with a $33,000 tax bill.

Outcome: The Legal Helpline appoints a tax lawyer to represent you in the appeal process. The appeal is successful, and you save $10,000 in legal fees.


Problem: An employment you recently let go of files a lawsuit against you, claiming wrongful termination.

Outcome: The Legal Helpline appoints an employment lawyer to handle negotiations with your employer, reaching a settlement and saving you $15,000 in legal fees.

Legal Expense Insurance, Explained.

What is Legal Expense Insurance?

Legal Expense Insurance is a policy coverage that provides access to legal advice on a set of common business topics with an experienced lawyer and the cost to retain a lawyer to deal with a specific set of common issues.

What does Legal Expense cover?

Legal Expense Insurance coverage typically includes coverage related to the following coverage areas:

  • Tax Protection: Legal advice if you are audited or wish to appeal a decision from the Canada Revenue Agency (CRA).
  • Statutory License Protection: Legal representation following the suspension, alteration, or cancellation of your license required to conduct business.
  • Employment Dispute: Legal advice and defense should an employee or ex-employee file a lawsuit against you.
  • Contract Disputes and Debt Recovery: Legal costs to go after a client or supplier regarding a breach of contract or failure on their part to pay an amount owed.
  • Property Protection: Coverage for legal costs to pursue legal action regarding damage to your property.
  • Bodily Injury: Coverage should you pursue legal action against a third party for causing a physical injury to you or one of your employees.

What is the cost of Legal Expense Insurance?

A Legal Expense Insurance policy costs around $216 to $324 per year. In the online quote application, we ask your business some questions to understand your coverage needs better. The following factors are typically taken into consideration when determining the cost of your premium:

  • Industry and Services Offered
  • Prior Legal Issues
  • Annual and Projected Revenue

What is not covered by Legal Expense Insurance?

Legal Expense Insurance does not provide coverage for:

  • Case-specific research;
  • Contract or legal document review;
  • Draft letters;
  • Insurance claims determination; or,
  • Insurance claims status inquiries.

Who needs Legal Expense Insurance?

You need Legal Expense Insurance if:

  • You do not have an internal legal team.
  • You need occasional legal support for your business.

What are the two types of Legal Expense Insurance?

There are two types of Legal Expense Insurance: Before-the-Event (BFE) and After-the-Event (ATE). BTE insurance is most commonly purchased by small- to medium-sized businesses to provide coverage for unforeseen legal events. ATE insurance provides coverage after a lawsuit has occurred, covering costs incurred during legal action. Speak to your broker to determine which option is best for you.

Frequently Asked Questions

Who do I call to obtain legal advice?

Legal expense policyholders will have a phone number listed within the insurance documents that will direct them to the proper legal team for assistance.

Is Legal Expense Insurance mandatory?

Legal Expense Insurance is not mandatory to operate your business, but as a busy business owner, it could save you a tremendous amount of time and financial resources in the event that you require legal assistance.

Can I purchase a standalone Legal Expense policy?

Legal Expense Insurance is a standalone policy designed to help business owners navigate legal situations. When used in conjunction with Directors & Officers Insurance, Errors & Omissions Insurance, and Commercial General Liability Insurance provides comprehensive legal support should your business be named in a lawsuit.

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