Knowing the benefits of Legal Expense Insurance and how it protects you and your clients!

As insurance brokers, it is essential that you stay informed and knowledgeable about the various insurance products available in the market.

Legal expense insurance (LEI) is emerging as a key risk mitigation cover. Understanding how the policies respond and coverage is crucial- enabling you to serve your clients better and help mitigate Professional Indemnity (PI) risks that could lead to (PI) claims.

As LEI becomes more utilised in the Australian market, brokers need to know the distinctions between LEI policies and how this knowledge can protect not only your clients, but your own.

Insurance brokers are responsible for providing tailored solutions that meet the unique needs of their clients. By familiarising yourself with the intricacies and benefits of LEI, you can accurately assess which cover best aligns with your client's requirements. This client-centric approach demonstrates the commitment to offering comprehensive coverage and minimises the potential for errors and omissions.

LEI policies can differ significantly. The best in the market offers both pursuit and defence, some provide only defence cover, varying deductibles, exclusions, and support services. By understanding the differences, you can identify potential coverage gaps and ensure that your clients' legal protection needs are adequately met. Clear explanations of policy terms, conditions, and exclusions will enable your clients to make informed decisions, reducing the likelihood of misunderstandings and potential PI claims.

It positions you as a comprehensive risk management partner, who understands the diverse needs of your clients and is committed to their long-term protection.

Benefits of Recommending ARAG's Legal Expense Insurance:

Enhanced Client Protection:

By recommending ARAG's LEI, you can provide your clients with additional protection against unexpected legal disputes. This proactive approach demonstrates your commitment to risk management and your relationship as a trusted advisor.

Financial Security:

Legal disputes can be financially draining, and commercial decisions are often made without sound legal advice. Your clients may need help to afford the prohibitive costs associated with litigation. ARAG's LEI ensures that your clients have access to legal representation, allowing them to defend their rights and interests without straining their financial resources.

Risk Mitigation:

You can mitigate your PI risk exposure by actively promoting LEI. First, LEI is a Pursuit and Defence cover. There are legal risk gaps that policies within a typical commercial portfolio will not cover, such as contract disputes and debt recovery, tax protection, tenancy, and employment (pursuit). Second, by encouraging clients to secure appropriate legal coverage, you reduce the likelihood of potential claims resulting from inadequate advice or insufficient coverage.

Competitive Advantage:

Recommending ARAG's LEI sets you apart from other insurance brokers in the market. It positions you as a comprehensive risk management partner who understands the diverse needs of your clients and is committed to their long-term protection. This knowledge instils confidence in your clients, assuring them they receive the best possible advice and protection.

In conclusion, as insurance brokers, it is crucial to deeply understand the distinctions between legal expense insurance (LEI) policies. By familiarising yourselves with the intricacies of different approaches, we can better serve our clients and mitigate errors and omissions risks. Knowing the variations in coverage limits, deductibles, exclusions, and claim procedures allows us to identify potential gaps and ensure our clients' legal protection needs are adequately met.

Recommending ARAG's LEI gives you a competitive advantage in the market. It highlights your understanding of your clients' diverse needs and our commitment to their long-term protection. This knowledge provides confidence, assuring them that they receive the best advice and protection.

By staying informed and knowledgeable and working with the team at ARAG Australia, brokers can provide tailored solutions, minimise risks, and deliver exceptional service to clients.

So, let us work together and continue to prioritise education and understanding LEI and its nuances, ensuring you continue being a valuable resource for your client's insurance needs.

Contact the ARAG Team at