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Legal Expense Insurance is emerging as a practical, affordable solution to help employees navigate everyday legal challenges. In turn it helps businesses boost staff retention with better benefits.

NATASHA GALE
ARAG AUSTRALIA

 
 

Life doesn’t stop when the workday ends - and neither do the legal challenges your employees can face. Employers are starting to recognise that to truly support their workforce, benefits need to extend beyond the usual health or hospitality discounts, and that an offer like Legal Expenses Insurance adds unique value.

“This shift reflects a broader understanding that real-life issues can have a significant impact on employee wellbeing and performance.” says Natasha Gale, ARAG Australia’s CEO.

“Legal Expense Insurance is emerging as a practical, affordable solution to help employees navigate everyday legal challenges. In turn it helps businesses boost staff retention with better benefits.”

 
Legal Stress is More Common Than You Think

Did you know that 1 in 4 Australians face legal issues serious enough to require a lawyer? From tenancy disputes and relationship breakdowns to personal injury claims, these situations often come without warning and can cause significant stress.

Unfortunately, many employees struggle to afford legal help, while legal aid services are already stretched thin. These unresolved legal issues can negatively impact attendance, focus, and overall wellbeing, making it harder for staff to perform at their best.

“Employers who provide legal support through their employee benefits program are standing out in a new way.” says Natasha. “They’re recognising that legal issues are just as critical to employee wellbeing and performance as physical or mental health.”

What is Legal Expense Insurance?

Legal Expense Insurance is a policy that gives employees direct access to legal advice and representation for common issues that often arise in everyday life. It covers a broad range of situations, including:

Tenancy disputes: from bond refunds to urgent repairs
Relationship breakdowns: including property division and custody arrangements
Consumer contract issues: covering renovations, faulty goods or services
Personal injury claims: such as cycling accidents, slips or dog attacks
Family legal matters: including wills, guardianship and powers of attorney

ARAG’s LEI policies also include additional features, such as a legal helpline, a documents centre with access to templates, and coverage for lawyer fees in both pursuing and defending claims.

Why It’s a Win for Employers

Offering legal expense insurance as part of your employee benefits package sends a clear message: you care about your people. Not just at work, but in all aspects of their lives. This practical support helps to reduce stress and absenteeism related to unresolved legal problems, boosting employee wellbeing and workplace wellness.

The business benefits are clear. LEI drives stronger engagement, loyalty and staff retention - all critical in today’s competitive labour market. It also supports lower absenteeism, higher productivity, and a more compelling employee value proposition.

“Legal support is more than a ‘nice-to-have’.” Natasha says. “It’s fast becoming an essential part of a comprehensive employee benefits strategy that delivers measurable business outcomes.”

Everyday legal challenges

After Tom’s mother passed away, what should have been a straightforward inheritance became stressful when an estranged relative contested the will. The dispute delayed the estate’s distribution and created conflict across the family. Thanks to Legal Expense Insurance provided through his employer, Tom had access to legal advice and expert representation. His solicitor helped resolve the matter efficiently, avoiding a drawn-out court battle. The support meant Tom could focus on work and family, knowing he wasn’t facing it all alone.

Simple to Set Up, Easy to Use

Legal Expense Insurance can be tailored to suit your organisation’s needs. You can choose an employer-paid model that covers all employees equally, or offer it as a voluntary opt-in benefit with discounted premiums.

Integration with existing HR or payroll platforms ensures smooth enrolment, while ARAG provides dedicated onboarding, communication support, and ongoing assistance to keep employees informed and engaged.

 

By including legal expense insurance in your employee benefits, you’re providing your workforce with valuable legal support that helps them thrive both inside and outside of work.
To learn more about how LEI can fit into your strategy, contact ARAG Australia on 02 8066 0162 today.

 
 

ARAG Services Australia Pty Ltd (ABN 14 627 823 198) (ARAG) has been granted delegated authority by the Insurer to enter into, vary or cancel Policies and handle Claims on their behalf. In providing these services, ARAG acts on behalf of the Insurer and not as Your agent. ARAG is authorised to provide financial services in accordance with its Australian Financial Services Licence (AFS Licence number 513547). Any advice provided by ARAG in relation to this product is general in nature and does not take into account Your individual circumstances.
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Any advice contained on this website is general advice only and has been prepared without considering your individual objectives, financial situation or needs. Before purchasing or renewing a product we recommend that you consider if it is suitable for your circumstances and read the policy terms and conditions.