How Legal Expenses Insurance Can Help Freelancers

We asked the insurer, ARAG, to share stories of customers they've helped with the legal expenses product and the cost of each claim.

14Mar'19

A couple of weeks ago we introduced a new product called legal expenses. This product helps you get paid, gives you access to legal advice 24/7, prevents loss of earnings whilst on jury duty and helps with tax disputes and investigations.

We asked the insurer behind this product, ARAG, to share two examples of customers they've helped with the legal expenses product and the cost of each claim.

Tax Enquiry

The insured received a letter from HMRC informing them that they were going to investigate their accounts. For a freelancer, a tax enquiry would not only eat up precious time and mental energy, but the cost of accountancy fees would rack up.

The insured contacted ARAG and said they wished to use their own accountant whose estimate was in the region of £4,500 to £7,500. ARAG appointed tax consultants to oversee these costs.

Following the investigation, the HMRC said they were happy with the insured's accounts and were taking no further action. The accountants' costs were assessed and paid by ARAG.

Costs met by the insurer: £4,525

The benefits for freelancers

The cost of the £4,525 in accountant's fees is exchanged for monthly payments of around £5.50. The insurer will also appoint an accountant to help with the enquiry if you don't already have one.

You may already have this product via a recommendation from your accountant. However, with Jack you can add this product to your current policy so you have just one premium and renewal date. It's also worth comparing features with the policy your accountant has recommended.

Contract Dispute Fast Track

The insured received a complaint from a client about the standard of work and said they were seeking compensation for the poor quality. This compensation totalled thousands of pounds. Following a robustly-worded letter from solicitors appointed by ARAG, the claimant withdrew their claim.

Costs met by the insurer: £780

The benefits for freelancers

The cost of consulting a solicitor can add up. In this case it cost almost £800. This product would also save freelancers time in sourcing a solicitor as ARAG would appoint their own legal experts to help. And as a bonus, there's a 24/7 legal advice helpline to assist with enquries related to contract disputes with clients.

Be A Confident Freelancer

It costs £65.71 per year to add legal expenses to your policy, which works out at about £5.50 a month.

As with any insurance policy, there must be no current circumstance which you're aware of that might give rise to a claim or loss. In other words, previous debts or loss of earnings outside the policy period wouldn't be covered.

It's a good idea to get insured as soon as possible, so start building your quote and get insured today.

We asked ourselves one important question …

What do we want out of an insurance provider?

With Jack is the answer