Prepaid Legal Services for Small Business

If you control your own business, even a home based business, you probably should have some legal insurance beyond what your existing business, auto and homeowner or renter policies cover. Your coverage on these policies may or may not cover legal services needed for such situations as false arrest, libel, slander, or invasion of privacy.

The growing complexities of the legal system bring about the spiraling costs of lawsuits. This can be exceedingly costly to a small business owner, particularly if you have a work at home business. You basically can't afford to trust that you will never be mixed up in an expensive legal action.

Paying an attorney to defend some claims against you or your business may ruin a small business. With money so tight these days, what small business owner can afford to pay at least $200 per hour for an attorney specializing in business law? Unless you are running a million dollar business, this sort of help is beyond the reach of most people.

A couple of choices are open to you.

First, check with your insurance agent to find out what additional policies or riders you can get that will cover legal expenses for typical legal actions arising out of the customary course of business. You might be able to get an umbrella plan that will extend both the dollar limits of your current coverage as well as boost the number of matters covered. An umbrella plan can be a low cost solution to your legal exposure.

A second option is a prepaid legal plan that protects you, your family, and your business. Normally, for a set monthly or annual fee your can receive a suite of legal services that are tailored to the needs of a small business.

One widely used and useful aspect of a prepaid legal plan is your ability to have phone conversations with your attorney. You can talk about possible issues with your attorney and get his or her legal recommendation before you do something that could result in a lawsuit. This is an important aspect of most plans and can help you preclude lawsuits, saving you a lot of time, energy, and worry.

Many prepaid legal plans also cover your attorney's time for reviewing standard documents and contracts. Without a legal plan you might not consider having contracts reviewed. But, your attorney can suggest ways to enhance the contract language and notify you of potential issues. This as well can rescue you from plenty of headaches.

Prepaid legal plans will also include your attorney's time for preparing for and conducting a trial, should a legal situation require a trial. Often your plan details the specific types of legal concerns that are covered for trail related assistance.

Typical of any legal agreement, you ought to read over any prepaid legal plan carefully to understand exactly what services are covered as well as their limits. You don't want to believe you have extensive coverage when your coverage is very limited.

Most plans also provide reduced fees for services not specifically provided for by the plan.

You also should be interested in the choices you will have for your attorney or law firm. After all, legal specialization and experience play an important role in your legal standing,. Look at the choices and ask each prospective firm for references from prior clients. If you are acquainted with other small business owners who have used a distinct plan, have a discussion about their experiences with them to determine their evaluation of the law firm they are working with.

You ought to also check with your state's Bar Association and the Better Business Bureau to get the background of the attorneys and see if there are any complaints, including fee disputes, against the firms. Find out about such items as your potential attorney's educational background, professional track record, and years of service in his or her specialty.

Also, determine how disputes with your legal plan provider are handled. See if they deal with disputes within their own organization or submit them to an objective third party for resolution. This can have a major influence on your relationship with your plan provider.

In any case, as a small business owner, you should think about the risk of legal actions against you and make preparations to handle those matters. You will rest easier and perhaps save a great deal of money in the process.

Prepaid Legal Plan
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