Commercial Legal Fees Insurance
Legal disputes can destroy a small business. Protect yourself.
Cover your legal costs for employment disputes, contract disagreements, property issues, criminal prosecution defence, and more. Don’t let legal fees bankrupt your business.
Who this is for?
This policy is designed for small businesses facing legal risks:
- Employers with staff
- Businesses with commercial contracts
- Property owners and tenants
- Businesses handling customer data
- Licensed businesses (cafes, bars, trade licenses)
- Anyone who could face legal action
If you employ people, sign contracts, or hold a statutory licence, you need this cover.
Real scenarios
Where this cover protects you:
Scenario 1: The contract dispute
A supplier delivers substandard materials and refuses a refund. You pursue legal action to recover $40,000. Your legal fees: $22,000.
What Commercial Legal Fees covers: Up to 75% of legal costs to pursue the contract dispute (capped at policy limit).
Scenario 2: The unfair dismissal claim
You terminate an underperforming employee. They file an unfair dismissal claim with the Fair Work Commission. Legal fees to defend: $18,000.
What Commercial Legal Fees covers: 100% of legal costs to defend the claim at tribunal.
Scenario 3: The workplace safety issue
WorkSafe prosecutes you after an employee injury. You need specialist criminal defence lawyers. Legal fees: $35,000.
What Commercial Legal Fees covers: Full legal defence costs for the workplace safety prosecution.
Scenario 4: The landlord dispute
Your commercial landlord claims you damaged the property and sues for $60,000 in repairs. You dispute the claim. Legal defence fees: $28,000.
What Commercial Legal Fees covers: Legal costs to defend the property dispute.
What's covered
Undertsanding your cover
Section A: Commercial contract disputes
Legal costs to pursue or defend contract disputes over $5,000 (up to 75% of legal fees for pursuit, 100% for defence).
Section B: Criminal prosecution defence
Legal defence costs for criminal charges arising from business activities, including workplace safety prosecutions and WH&S breaches.
Section C: Employment disputes
Legal costs to defend claims from employees, ex-employees, or prospective employees including:
- Unfair dismissal claims
- Discrimination or harassment allegations
- Breach of employment contract
- Workplace bullying claims
- Underpayment disputes
Section D: Property disputes
Legal costs arising from commercial property you own or lease, including landlord/tenant disputes and property damage claims.
Section E: Data protection
Legal defence costs if you’re prosecuted for Privacy Act breaches or data protection violations.
Section F: Statutory licence defence
Legal costs to defend against suspension, revocation, or refusal to renew business licences (cafes, bars, trade licenses, etc.).
Section G: Employee breach of restrictive covenants
Legal costs to pursue ex-employees who breach non-compete or non-solicitation clauses.
Section H: ATO tax investigation
Legal costs for ATO investigations into GST disputes, PAYG, or FBT (separate from Tax Audit Insurance—this is for legal representation, not accountant fees).
What's not covered
Knowing the limits
✗ Tax audit accountant fees
Use Tax Audit Insurance instead (this covers legal representation only)
✗ Deliberate breaches
Intentional misconduct or fraud
✗ Pre-existing disputes
Disputes that started before you bought the policy
✗ Fines and penalties
We cover legal fees, not the fine itself
✗ Debt collection
Pursuing unpaid invoices (unless contractual dispute >$5k)
✗ Professional negligence
Use Professional Indemnity instead
✗ Road traffic offences
Speeding, drink driving, etc.
How to claim
If the ATO contacts you:
1. Notify us immediately
There are three ways you can log the claim:
- Log it online
- Email claims@withpocket.com.au
- Call 1300 475 092
Do this as soon as you become aware of a potential legal dispute or receive legal correspondence.
2. Send us documentation
Provide:
- Legal letters or court documents
- Contracts or agreements
- Employment records (for employment disputes)
- Any relevant correspondence
3. The insurer will assess cover
We’ll liaise with the insurer and confirm whether your dispute is covered and approve legal representation.
4. The insurer will appoint lawyers
We’ll appoint specialist lawyers experienced in your type of dispute. You can suggest your own lawyer (subject to our approval).
5. If the claim is to be paid, the insurer will pay legal costs
We settle legal fees directly with your lawyers after the case concludes (up to policy limits).
Important: For employment disputes, you should seek legal advice beforedisciplinary action, dismissal, or major changes to employee terms. Early advice reduces claim likelihood.
Get covered now
Answer 4 quick questions. Get an instant quote. Bind online.
- Quote takes: 2 minutes
- Certificate issued: Instantly upon payment
- Coverage starts: Immediately (or future date of your choice)
Frequently asked questions
Get your answers to Commercial Legal Fees questions here.
Does this cover me if I sue someone, or just if I'm sued?
Both, but with different limits. If you’re defending a claim, we pay 100% of legal costs. If you’re pursuing someone (e.g., a contract dispute), we pay 75% of legal fees.
Can I use my own lawyer?
What if I lose the case?
Do I need this if I already have Public Liability?
What's the difference between this and Tax Audit Insurance?
Can I make multiple claims in one year?
Still not sure?
Get in touch and we can help you.
Employment disputes are the biggest risk for small businesses:
- 40% of small businesses face an employment dispute within 5 years
- Average unfair dismissal case costs $15,000-$25,000 to defend
- Most disputes arise from poor termination procedures
Want advice on reducing your employment risk?