Legal expenses insurance is sometimes referred to as legal protection insurance
Legal expenses insurance (LEI) is an insurance policy taken out by individuals and businesses to cover the legal costs associated with certain legal actions.
Legal expenses insurance can be taken out on a before the event basis, which is a traditional way of purchasing insurance. This provides you with financial protection in case a legal dispute happens.
Alternatively, legal expenses insurance can be taken out after the event, where financial protection is needed against the risk of losing a legal action. This protects you from being liable for the other sides legal fees.
Legal expenses insurance is subject to the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA) regulation, the rules of The Financial Ombudsman Service and The Insurance Companies (Legal Protection Insurance) Regulations 1990.