Before the Event Legal Expenses Insurance Will Cover All Legal Costs

A before the even legal expenses insurance provider will be able to understand your needs and deliver a product designed to meet your specific requirements. They are always keen to work closely with solicitors, accountants, broker networks and underwriting agencies to develop solutions relevant to their client’s demands and needs. These providers are well experienced and can assist the clients to better manage the risks, which they are facing. They provide innovative sustainable solutions and insure against the legal risks faced by the business community as well as offer clear and simple communication, exceptional customer service and inexpensive products. You can rely on these specialists for truly insightful advice and a cover that is tailored to meet your specific requirements.

• Before the event legal expenses insurance advisers also specialise in structured arrangements (through standalone or protected cell captives) for intermediaries, affinity groups and specialist agents, providing them with the opportunity to share in the underwriting results. They offer vital underwriting expertise and capacity to fulfill the legal expenses insurance requirements. Their unique products are made especially for the clients’ needs. Most insurance brokers work closely with distribution partners comprising of insurance brokers, trade and affinity groups, insurers and professional organisations who sell and distribute the products and services to their clients and members.

• In some cases, even if you may win your case but still be liable to pay your own legal costs as well as the legal costs of the other party to the dispute, particularly if you are at fault in some way. In majority of cases the amount of any out of pocket expenses will be payable regardless of the outcome of the case. In addition to that, if the case is lost it is likely that you will be ordered to pay the other side’s legal costs, which are not covered.

• Before the event legal expenses insurance normally includes motor, personal and commercial legal expenses insurance.

• This type of insurance is quite easily available to both the individuals and companies. You can get this insurance by either adding cover to a household, motor or just as general commercial policy. The cover may also be ideal for the other side’s costs for an event that has already occurred, such as a personal injury, contract dispute or insolvency litigation.

• It is no secret that legal advice can be costly, and often this can stop an individual from seeking to enforce their rights. You must consult an advisor prior to choosing an insurance company, to discuss your requirements and conditional fee agreements. You may also take advantage of the funding options that are available to assist with the cost of legal work.

Most of the time, a dispute has a general principle, which is that the loser will have to pay the winner’s costs. Before the event legal expenses insurance allows access to advice and cover for the legal costs of pursuing or defending certain classes of legal action.

Solicitors’ Guide – Instantly Cross Sell More of Your Legal Services to Your Clients and Prospects

Often when I attend a new solicitors practice to help them with their marketing, I am amazed at the lack of thought that has gone into promoting the services of the law firm. From the outside of the office there is often very little evidence of the services that the law firm can provide for passers by, there are no posters in the windows and the signage is old or tatty. Some simple changes can be made to the practice both internally and externally that can significantly improve the cross selling of your legal services to your clients. I will start by looking at the outside of your offices and then walking through the building and looking at your marketing communications. By the end of it, if you implement the changes I guarantee you will see results.

Your Premises

Let’s start with the first thing your clients see when they visit your offices. This is your chance to promote your services completely free of charge to the outside world. Are you making the most of it? Can you answer yes to all of the following questions?

  • Do you have brightly illuminated signage (all bulbs working)?
  • Do you list all of your core services clearly on your exterior signage?
  • Are your telephone number and website address displayed?
  • Do you have an A board outside of your offices with thought provoking and changing posters inside it?

If you cannot answer yes to all of these questions, act now to make immediate improvements and make the most of that passing trade. One final point on this section is that in this day and age you have no excuse if you still shut for lunch. In a tough economic climate you must be open at every opportunity possible, and if you take the time to make the changes above you need to be open to make the most of your passing trade.

Your Reception Area

Once a client or potential client enters your reception area, they are a captive audience. You can now sell your services to them and they expect you to do so. First things first, remove every single item of printed material that is not your own. Now is not the time to promote other local businesses or charities. By being a successful practice you will have far more opportunity to give to reception, but do not do this in your reception area.

Do you:

  • Have at least three different types of promotional materials for all of your services? Eg a brochure, direct mail postcards, and legal help sheets?
  • Have advertising posters on the walls?
  • Have testimonials and case studies praising your services?
  • Have a receptionist who is trained to cross sell your services?

Your Client Communications

Now we move onto your communications with existing clients. How can you cross sell your legal services to your existing clients in your client communications?

  • Add a PS to every client letter promoting one aspect of your service
  • Enclose a different promotional item with client letters every month (eg Wills in January, Personal Injury in February, Moving Home in March (in time for Easter)).
  • When your clients send you a thank you letter, thank them in writing and ask them to recommend their family and friends to you for the same excellent service.


When the economy tightens, you need to do all that you can to win more business as cheaply as possible. Cross selling more of your legal services to existing clients and prospects is one of the easiest ways of winning new instructions. Take the action above and you will be well on your way to winning new business for your solicitors practice.

Captive Insurance

Most accountants and small business owners are unfamiliar with a great way to reduce taxes and expenses. By either creating or sharing “a captive insurance company”, substantial tax and cost savings will benefit the small business owner. Over 80% of Fortune 500 companies take advantage of some kind of captive insurance company arrangement. They set up their own insurance companies to provide coverage when they think outside insurers are charging too much, or coverage is simply unavailable. The parent company creates a captive so that it has a self-financing option for buying insurance. The captive then either retains the risk of providing insurance or pays reinsurers (companies that reinsure insurers) to take the risk.

If you buy insurance from a standard insurance company, your money buys a service, but the money is spent and gone forever. When you utilize or “rent a captive”, your money buys a service but it is invested with a good possibility of a return.

In the event of a claim, the company pay claims from its captive or from its reinsurer. To keep costs down, captives are often based in places where there is favorable tax treatment and less onerous regulation (i.e. Vermont, South Carolina, and Bermuda).

Optimum utilization of a captive by a small business, medical practice, or professional

The best way for a small business, medical practice, etc., to take advantage of captive benefits is to share or rent a large captive. You can significantly decrease your costs of insurance and obtain tax deductions at the same time. There are, as well, significant tax advantages to renting a large captive as opposed to owning a captive.

The advantages of “renting a captive” become apparent when you consider that the single parent captive may be forced to use less than adequate standards or marginal service so they can meet the financial requirements associated with the initial general licensing and administrative costs of establishment. Additionally, when renting a large captive, the captive bears the burden of initial capital commitment and protects reinsurers from runaway claims and unnecessary losses through their underwriting protocols and claims management practices, all at significant savings to the small business owner.

Other advantages include low policy fees and no capital responsibilities to meet solvency requirements or annual management and maintenance costs. By renting a large captive, you only pay a pro rata fee to cover all administrative expenses for the captive insurance company. Another significant advantage of renting a large captive is the ability to take a loan. It is illegal for an individual captive to make loans to subscribers. When renting a large captive, however, the individual subscriber has no ownership interest, and this difference makes it legal for a rented captive to make loans to individual subscribers. So you can make a tax deductible contribution, and then take back money tax free. Operation of an individual stand alone captive insurance company may not achieve the type of cost savings that a small business could obtain by renting a large captive. To rent a large captive, your company simply fills out some forms. Renting a captive requires no significant financial commitment beyond the payment of premiums.

Buyer Beware

As with many strategies to enjoy tax savings and advantages, you must to do this correctly. IRS and other problems have happened, in the past, to those that have done this improperly or abusively. You probably want to work with a large captive that already has over fifty million in assets and is being rented by at least 200 different companies. Also, you’ll not want to own or control any part of the captive. As an unrelated party, you can more likely significantly decrease your cost of insurance, eliminate capital requirements, and minimize maintenance costs.

You want to deal with a large captive that meets the risk shifting requirements of IRS Revenue Ruling 2005-40. Be cautious about setting up your own small captive. In addition to all the costs, a small captive may find that the expense of defending itself from regulatory oversight is much greater than any benefits received.