Legal Expenses Insurance for Companies
Comprehensive legal protection for your company – so you can enforce your rights
Commercial legal expenses insurance covers the costs of legal disputes. It reimburses lawyer and court fees, expert fees and, in case of loss, also the opposing party's costs.
Why important? A single lawsuit can quickly cost €10,000-50,000 or more – even if you are right!
Difference to private legal protection: Commercial insurance specifically covers business risks.
Labor law protection
Disputes with employees or as employer
Typical disputes:
- Wrongful dismissal lawsuit
- Severance and references dispute
- Working hours and overtime
- Warning and dismissal
Contract law protection
Disputes from contracts
Typical disputes:
- Defective goods
- Customer does not pay
- Disputes with partners
- Warranty disputes
Tax law protection
Tax office disputes
Typical disputes:
- Contesting tax assessment
- Audit additional claims
- Cost deductibility
- VAT objections
Administrative law protection
Disputes with authorities
Typical disputes:
- Building permit denied
- Trade supervision conditions
- Operating permits
- Public order disputes
Traffic law protection
For company vehicles
Typical disputes:
- Company car accident
- Traffic damage claims
- Driver fines
- Employee license revocation
Criminal law protection
Defense in criminal allegations
Typical disputes:
- Tax evasion allegation
- Insolvency offence
- Fraud allegations
- Environmental crimes
Lawyer fees
Up to the agreed coverage amount
Court costs
All instances
Expert fees
For evidence
Witness fees
Compensation for witnesses
Opponent costs
In case of loss
Mediation costs
Out-of-court resolution
Bail
In criminal proceedings
Coverage amount
Limits reimbursement per case:
- Standard: €300,000 per case
- Extended: €500,000 or unlimited
- Recommendation: At least €300,000, better unlimited
Deductible
Your share per case:
- Typical: €150-500 per case
- High deductible advantage: Lower premium (up to 30% savings)
- Recommendation: €250-500 for good value
Important: 3-month waiting period from start in most areas.
Exceptions: Traffic protection often no waiting period.
Damage claims: Often no waiting for claims against others.
Caution: Foreseeable disputes are not insured!
Fines, penalties: not reimbursed
Intentional crimes: excluded
Cartel and competition law: usually not in standard
Already pending proceedings: Before insurance start
Insolvency: usually excluded
Investments: stock disputes etc.
Basically every company! Particularly important for:
All businesses
Legal disputes can affect any company
Employers with staff
Wrongful dismissal lawsuits cost €5,000-20,000
Construction & crafts
Frequent disputes over defects
Online retailers
Warnings due to terms, data protection
Service providers
Contract disputes with clients
Restaurants & hotels
Disputes with landlords, suppliers
Premiums depend on various factors:
Industry & risk
Higher-risk industries pay more
Number of employees
More staff = higher premium
Company turnover
Higher turnover = higher premium
Selected areas
Complete protection more expensive
Deductible
Higher deductible reduces premium
Reference values for small companies:
- • Sole proprietorship / freelancers: ~€250-400 per year
- • Small GmbH (5-10 employees): ~€500-800 per year
- • Medium company (20-50 employees): ~€1,000-2,500 per year
- • Larger companies (50+ employees): €2,500+ per year
Conclude early: Due to 3-month waiting period.
No-claims discount: For years without claims.
Free choice of lawyer: Should be standard.
Mediation clause: Often faster than court.
Get coverage commitment: Before hiring a lawyer.
Phone legal advice: Many tariffs offer free initial.