Legal Expense INsurance for Contractors
Protect Your Business From Legal Risks
In construction, legal disputes aren’t a matter of if—they’re a matter of when. Nearly 30% of small construction firms in Canada will face a legal challenge within three years. The average cost of a two-day civil trial exceeds $30,000, not including lost time and disruption.
Approved Casualty & Surety’s Legal Expense Insurance (LEI) for Contractors ensures you never fight alone. Whether it’s a client withholding payment, an employee claiming wrongful termination, or the CRA initiating an audit, you’ll have a legal team ready—funded by your policy.
Why Contractors Need Legal Expense Insurance
Contractors often find themselves “outgunned” when disputes arise with large clients, regulators, or unions. Our program levels the playing field by:
Covering lawyer fees and retainers
so you never face unpredictable legal bills.
Providing 24/7 access to real legal advice
not call centre scripts
Turning unbudgeted legal nightmares into already-handled situations
Giving you leverage in disputes
big players back down when they realize you have the bench strength to fight back.
Coverage Highlights
Legal Expense Insurance for contractors covers a broad spectrum of risks, including:
Contract Disputes & Debt Recovery
When clients or contractors refuse payment or breach agreements.
Unemployment Disputes
Wrongful termination, discrimination, or harassment claims.
Legal Defence
Protection under Bill C-45 and occupational health & safety investigations.
Statutory License Protection
Defence if your contractor’s license is suspended or revoked.
Personal Injury Claims
Coverage when third parties pursue injury lawsuits outside of workers’ comp.
Tax Disputes
Representation during CRA audits or appeals (after first $500).
Property Disputes
Trespass, nuisance, or encroachment cases involving worksites.
Example Scenarios
Employment Dispute
A tradesman terminated for repeated safety violations sues for wrongful dismissal. LEI covers your defence costs.
CRA Audi
Your annual return is flagged, and you’re facing a lengthy HST audit. Legal tax support is included.
Contract Payment Holdback
A general contractor refuses to release a major holdback. With LEI backing, you pursue legal action—your fees covered.
Workplace Accident
After a site injury, you face a Ministry of Labour investigation. Bill C-45 defense is included.
What Brokers Should Know
Approved C+S Legal Expense Insurance is:
- Underwritten by Lloyd'sbacked by A-rated paper for confidence and stability.
- Broker-exclusiveavailable through our distribution partners only.
- Designed for contractorsbuilt around the realities of disputes in construction, renovation, and trades.
Get Started Today
Shield your contracting business from the unexpected. Legal Expense Insurance gives you certainty, leverage, and peace of mind.
FAQs
What types of contractors qualify?
General contractors, specialty trades, and construction businesses of all sizes are eligible.
Does this replace my commercial general liability (CGL) policy?
No. LEI complements your CGL by covering the legal fees to assert or defend your rights, rather than damages or bodily injury claims.
Are CRA audits really covered?
Yes—tax disputes, including CRA audits, are included (with a $500 deductible).
What's the difference between LEI and having a lawyer on retainer?
With LEI, the insurer pays the legal bills, not you. Instead of unpredictable retainers, you get predictable, budgeted protection.
How much does coverage cost?
Premiums depend on your business size, trade, and risk profile. Contact us for a quote.
