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What legal protection should my business have?

In the event that someone takes legal action against your business, it pays to ensure you are protected.

Not only can this help your business to continue trading during potential legal proceedings, but it can also lessen the potentially heavy financial burden that legal costs can impose on a business.

We explain what legal protection a business should ideally have in place.

What legal protection should my business have?


Businesses should be insured for a number of reasons. Not only to protect themselves, but also to protect the public, their premises and their stock.

As we outline in our blog post, ‘What sort of business insurance do I need?’, it’s important that businesses take steps to protect themselves.

Insurance covers a business for a variety of issues and can, when necessary, be called upon to help provide a pay-out which can be used to cover damage, legal fees, repairs or compensation depending on the issue. The key insurance areas businesses should ideally have include:

  • Employers liability insurance
  • Public liability insurance
  • Product liability insurance
  • Property insurance
  • Professional indemnity insurance

For the most part, these can help your business resolve any potential legal disputes amicably. You may find that your insurance premiums change as the result of a claim. However, the alternative could be a bigger cost to your business as you have to attempt to find the funds to rectify a problem by yourself.

Legal cost insurance

You should also consider legal expenses insurance. This can help to cover the costs of legal fees and proceedings during legal action which aren’t covered by the other insurance that a business should look to have.

Legal expenses insurance can cover:

  • Criminal Prosecution Defence
  • Employment Tribunal Representation
  • Tax and VAT
  • Property disputes cover
  • Data Protection Prosecution cover
  • Jury service payment
  • Personal injury pursuit cover
  • Statutory Licence Protection

Legal expenses insurance can help to pay for solicitors, legal fees and potentially help with any compensation payments that need to be paid as the result of legal action.

Ensuring you’re protected can help your business keep running following a legal problem, as your business has not directly suffered a potentially major financial hit.

Access to legal advice

It is important to ensure that your business has access to expert legal advice.

In the event that someone takes action against your business, either due to an accident or a dispute, for example it’s advisable to have access to professional help to build a defence and understand what your next steps should be.

This might mean seeking help from Citizens Advice or consulting directly with a solicitor.

Understanding what your next steps should be can help to avoid a dispute from becoming a full-blown legal proceeding by reaching a settlement instead, or you can enlist the right professional support for your business to defend itself in a court of law.

You should also seek out advice when necessary to help ensure you stay on the right side of the law with regards to other business issues. This include topics such as GDPR and health and safety.

How can FSB help with your legal protection?

The right legal protection and insurance can help to protect your business in the event of a claim or dispute being levelled against you.

Businesses can access our Legal Protection services through our Business Essentials package. These services are designed to provide businesses with up-to-date information and support, helping to better protect themselves and their staff.

Having access to advice and guidance to navigate a complaint can be vital in helping to protect a business.

FSB members, as part of our Legal Protection services, receive access to:

  • Legal expenses insurance,
  • Legal advice, including the following sections:
    • 24-hour Legal Advice helpline
    • Tax and VAT advice
  • Health and safety advice and support
  • Online Legal Hub providing a comprehensive range of support materials
  • Health and safety training videos
  • General Data Protection Regulation (GDPR)

These services can help your business to stay on the right side of the law in relation to a range of different issues.

To find out more about how our Legal Protection services could benefit your business, visit our FSB Legal Protection page.

Legal Protection Scheme from FSB

Legal protection covers various scenarios and ensures you and your business are covered

Find out more