The gap legal expense fills
A commercial package pays when your client is liable for injury or damage. It does not pay your client's lawyer to sue a customer, defend a wrongful dismissal claim or answer a CRA audit. Those costs come out of operating cash. Legal expense insurance covers them, up to the policy limits.
It complements general liability and E&O. It does not replace them.
What the policy covers
Each coverage carries a $50,000 limit per claim, inside a $100,000 policy aggregate.
| Coverage | What it pays for | Key condition |
|---|---|---|
| Legal advice service | 24/7 telephone legal advice on any business legal question | Unlimited calls; a call is not a claim |
| Debt recovery | Collecting unpaid invoices, starting with a demand letter | Minimum debt of $2,500 |
| Contract disputes | Pursuing or defending a dispute over goods or services | Minimum $5,000 in dispute |
| Employment disputes | Defending claims by employees or former employees | 90-day waiting period from inception |
| Restrictive covenants | Enforcing a non-compete or non-solicit against an ex-employee | 90-day waiting period from inception |
| Legal defence | Criminal, occupational health and safety and privacy law investigations | Arising from the insured's business |
| Property disputes | Trespass, nuisance or damage to business property | Insured pursues the action |
| Personal injury | Pursuing a third party after a work injury away from the premises | Within Canada |
| Tax disputes | A CRA audit or an appeal of a CRA decision | Claim first notified in the policy period |
| Statutory licence | Defending a licence suspension, revocation or non-renewal | Appeal against the authority's decision |
Coverage is subject to the policy terms, conditions and exclusions. Contract disputes exclude insurance, lending, employment, real estate and franchise contracts, structural construction work, arbitration clauses and professional liability.
The 24/7 legal advice line
Every policy includes unlimited telephone legal advice on any question about the business, under the laws of the provinces and federal Canada outside Quebec. Calls are confidential and are not claims. Early advice settles many issues before anyone needs to file.
Three versions, one structure
- General. For small and mid-sized businesses and professional firms. $500 deductible.
- Construction. For contractors and trades, with Bill C-45 defence and holdback disputes in focus. $2,500 deductible. See contractors legal expense.
- Retail. For stores dealing with supplier, landlord and employee disputes.
Condominium corporations have their own program with higher limits. See condo legal expense.
How to place it
For professional firms, legal expense can be added to an E&O quote at quote.approvedcasualty.com, priced from the client's revenue. Revenue above $10M refers to an underwriter. For other businesses, send a short submission and an underwriter quotes it.
