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Cover the gaps in your current business insurance

What do tradies (be it a plumber, electrician, or a handyman), a professional consultant, an engineer, café owner or a one-man band and his coffee van, have in common? If you’re one of these, plus many more industries you are likely to be a Sole Trader, working hard to make your business a success. And you’ll all have similar problems.

  • Criminal Prosecution Defence
  • Property and goods
  • Identity Theft
  • Statutory Licence
  • Compliance & Regulation
  • Tax audit or investigation that result in accountancy fees that come with an audit
  • Contract Disputes
  • Tenancy disputes
  • Debt Recovery

The following insurance policies are the most common for Sole Traders

  • Public Liability Insurance

    is for if there has negligence in the course of your business activities which has led to property damage or bodily injury to a third party then your public liability policy will help to defend you in these scenarios.
  • Tools of Trade Insurance

    provides cover for your valuable tools against loss or damage in various circumstances such as theft or fire. Accidental damage cover is also available.
  • Personal Accident

    can provide cover for loss of earnings in the event of either sickness or accident (or both) where you are unable to work for an extended period of time.

Often there can be a gap in these insurance covers when it comes to legal costs and the ability to pursue or defend your legal rights. Businesses usually make decisions based on the commercial realities of cost v reward-having legal expense insurance provides your business with the choice to exercise your legal rights.

ARAG Legal Expense Insurance provide affordable and a comprehensive cover to support your business, regardless of size it’s like having a lawyer in your back pocket.


1 in 5 businesses

Have been involved in a legal dispute in the last 5 years


of all abandoned disputes were due to the costs associated outweighed the potential gains



What does Sole Traders Business Legal Expense Insurance Cover?

Depending on your policy and business, a legal expense insurance policy will cover:

Levels of Cover
Business Comfort
Business Elite
Legal Information Helpline
Document Centre
Employee Protection (unlawful discrimination)
Employment Restrictive Covenants
Criminal Prosecution Defence (including WHS investigations)
Property and goods
Statutory licence
Compliance & Regulation
Tax Protection
Contract disputes Not Included
Tenancy disputes Not Included

For a full description of policy cover, conditions and exclusions, please read the policy wording. Limits of Indemnity apply to the product. Contractual and Tenancy disputes (Business Elite) are an additional module to Business Comfort.


In addition, each policy comes with access to our Legal Document Centre & Legal Information Helpline. You can access these at any time and at no cost, no claim is required. Our legal experts and documents are there to provide you with the support and advice, that will hopefully help you avoid getting into situations where you need to make a claim. The average daily fees for lawyers in Australia may stop you being able to pursue your rights, but with an ARAG policy the weight of cost and worry is sorted. ARAG is a before the event cover, so you’ll need to get the policy before any issues come up.


Up to $3,000 daily court date


From $5,000 daily for a junior Barrister court fee
Up to $10,000 daily for a Senior Barrister
Up to $25,000 daily for a Barrister with a special



Case Studies

Check out some of our case studies, showing how having legal expense insurance can be for your business.

Case Study: Criminal Prosecution Defence

Following an accident on their worksite, SafeWork attended the premises and issued a Prohibition Notice requiring the business to stop work. The business challenged the Prohibition Notice on the grounds that the system of work was deemed safe. The insured contacted ARAG and a claim was lodged. ARAG appointed lawyers who ran proceedings to challenge the Prohibition Notice with the result being that the Prohibition Notice was cancelled. ARAG paid the business’ legal costs in relation to the proceedings.

Case Study: Contract disputes

Knock on Wood, a carpentry business, was approached by a customer to install skylights in their customer’s home. Knock on Wood is a small enterprise and engaged a Skylight contractor to supply and install the skylights. The skylights were installed and not properly sealed. The cost of installation of two skylights was $7,000. Following complaints by the customer, Knock on Wood arranged for the skylights to be replaced by a different contractor, they then claimed damages from the original contractor. The originally contractor refused to compensate Knock on Wood. Knock on Wood contacted their broker who then contacted ARAG Claims team, and formally lodged a claim on behalf of their client. ARAG reviewed and accepted the claim, appointed lawyers who forwarded a demand for payment of compensation to the contractors which resulted in negotiations and a quick settlement with damages paid to Knock on Wood. As there was a nil excess there were no out of pocket expenses and ARAG paid the legal costs incurred.

Case Study: Tax Protection

Perfect Plumbing has been lodging its BAS statements and Tax returns regularly. The ATO has announced its intention to look at compliance in several industries including the plumbing industry. The then ATO randomly selects Perfect Plumbing for a tax audit. After preliminary inquiries the ATO advised Perfect Plumbing’s accountant that it intended to audit their BAS lodgements. ARAG appointed accountants to assist with the audit and demonstrate BAS has been appropriately accounted for. ARAG met all costs of the appointed accountant other than the excess which was paid by Perfect Plumbing to the appointed accountant.

Case Study: Contract disputes

Bright Spark Electrics purchased bespoke lighting, with accompanying accessories for a large residential project. Mid-way through the installation the client changed their mind and wanted different lights. They asked Bright Spark to cancel the remaining order. Bright Spark explain that the client will need to pay for the change as the lights were non-refundable. The client agreed and Bright Spark ordered and installed new lights. However, when issued with the final invoice, the client then refused to pay for the unused lights. The client refused all requests for payment and denied they had agreed to pay for the unused material, despite text messages and emails. Bright Spark contacted the ARAG Legal Information Helpline, and then referred to ARAG claims. Lawyers were appointed to recover damages from the client. After debt recovery proceedings commenced the client agreed to pay for 80% of the total invoice. ARAG paid all legal costs incurred in the proceedings, and Bright Spark Electric paid a $1,000 excess.

Want to know more?

Ask your Insurance Broker about Legal Expense Insurance or contact us if you want to know about other products we offer.

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.
The Insurer is detailed in your policy documents.

All enquiries should be addressed to ARAG.

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.