Why Legal Expenses Insurance Is a Must-Have for Australian Small Businesses

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KEY SUMMARY
Legal Expenses Insurance (LEI) is a practical and affordable way for small businesses to manage unexpected legal costs. While many business owners insure their property and liability risks, legal expenses are often overlooked - until a dispute arises. From contract disagreements to employee issues or tax investigations, legal matters can quickly become expensive and time-consuming. LEI helps cover the cost of legal advice and representation, giving small businesses access to professional support without blowing the budget. Though it’s not widely known, this type of cover can make a real difference when legal action becomes unavoidable.

Could your business afford to fight a legal battle — even if you did nothing wrong?

Running a small business in Australia today is no easy feat. Between juggling operations, staff, customers, and compliance, most owners don’t have time to think about legal issues; until they’re knee-deep in one. That’s where Legal Expenses Insurance (LEI) comes in. It’s one of the most underrated types of business cover, but one that can make a huge difference when things go wrong.

What is Legal Expenses Insurance?

Legal Expenses Insurance helps cover the cost of legal representation and advice in the event your business becomes involved in a legal dispute. This can include issues like employment disputes, tax investigations, debt recovery, contract disputes, or even regulatory investigations.

For many small business owners, the cost of seeking legal advice - let alone going to court - can be financially crippling.

"Legal expenses insurance gives small businesses access to justice without the financial risk. It’s an affordable safety net for the unpredictable."

(Source: The Australian Small Business and Family Enterprise Ombudsman (ASBFEO)).

Why Aren't More Businesses Talking About It?

Despite its potential to save businesses thousands, Legal Expenses Insurance is still not widely known or understood. Many business owners assume their general liability or professional indemnity policies will cover legal disputes — but this is often not the case.
LEI is typically a standalone policy or an optional extension to business insurance. It’s surprisingly affordable, yet under-utilised.

"Legal risk is one of the fastest growing threats to small business viability. Yet many remain uninsured simply due to lack of awareness."

(Source: RiskLogic).

Why It Matters in Today's Climate

Australia’s regulatory environment is becoming increasingly complex. From Fair Work compliance to contract law and privacy obligations, businesses today operate in a minefield of potential legal exposure.

With LEI in place, you don’t just get help when things go wrong — you can access early legal advice to nip potential issues in the bud.

Did You Know

Over 70% of small business disputes are settled out of court - not because the business was wrong, but because they couldn’t afford the fight.

Common Scenarios LEI Can Help With

Here are some common situations where Legal Expenses Insurance can come to the rescue:

1. A former employee lodges an unfair dismissal claim — your LEI covers the legal defence costs.

2. A customer disputes your contract terms — you get advice and representation to resolve the issue.

3. The ATO launches a tax investigation — LEI covers your accountant and legal fees.

4. A supplier fails to deliver — LEI helps you recover damages.

5. You’re fined for non-compliance — your policy may help defend the claim or mitigate penalties.

How Much Does It Cost?

Legal Expenses Insurance for a small business typically starts from just a few hundred dollars per year, and can give you access to:

  • 24/7 legal advice helplines
  • Representation in court or tribunals
  • Legal costs covered up to a specified limit (often up to $250,000)

As with any insurance, the devil is in the detail. Not all policies are created equal, so working with an insurance broker who understands your business is key.

Did You Know

Less than 20% of Australian SMEs currently hold Legal Expenses Insurance, despite 1 in 3 experiencing a legal issue each year.

The Bottom Line

Legal issues can arise when you least expect them. And when they do, they’re not just expensive — they’re time-consuming, stressful, and potentially business-threatening.

Legal Expenses Insurance won’t prevent legal issues from happening, but it ensures you’ve got the backup to deal with them when they do.

 

Need help figuring out if Legal Expenses Insurance is right for your business?

At Midland, we specialise in helping Australian small businesses find the right protection. We’ll explain Legal Expenses Insurance in plain English and help you find a policy that suits your needs and budget.

Whether you're a sole trader, growing startup, or established business — our experienced brokers are here to help.

You can call us on 1300 306 571, or contact us online to get a free quote and expert advice.

Why Legal Expenses Insurance Is a Must-Have for Australian Small Businesses

Why Legal Expenses Insurance Is a Must-Have for Australian Small Businesses 
KEY SUMMARY
Legal Expenses Insurance (LEI) is a practical and affordable way for small businesses to manage unexpected legal costs. While many business owners insure their property and liability risks, legal expenses are often overlooked - until a dispute arises. From contract disagreements to employee issues or tax investigations, legal matters can quickly become expensive and time-consuming. LEI helps cover the cost of legal advice and representation, giving small businesses access to professional support without blowing the budget. Though it’s not widely known, this type of cover can make a real difference when legal action becomes unavoidable.

Could your business afford to fight a legal battle — even if you did nothing wrong?

Running a small business in Australia today is no easy feat. Between juggling operations, staff, customers, and compliance, most owners don’t have time to think about legal issues; until they’re knee-deep in one. That’s where Legal Expenses Insurance (LEI) comes in. It’s one of the most underrated types of business cover, but one that can make a huge difference when things go wrong.

What is Legal Expenses Insurance?

Legal Expenses Insurance helps cover the cost of legal representation and advice in the event your business becomes involved in a legal dispute. This can include issues like employment disputes, tax investigations, debt recovery, contract disputes, or even regulatory investigations.

For many small business owners, the cost of seeking legal advice - let alone going to court - can be financially crippling.

"Legal expenses insurance gives small businesses access to justice without the financial risk. It’s an affordable safety net for the unpredictable."

(Source: The Australian Small Business and Family Enterprise Ombudsman (ASBFEO)).

Why Aren't More Businesses Talking About It?

Despite its potential to save businesses thousands, Legal Expenses Insurance is still not widely known or understood. Many business owners assume their general liability or professional indemnity policies will cover legal disputes — but this is often not the case.
LEI is typically a standalone policy or an optional extension to business insurance. It’s surprisingly affordable, yet under-utilised.

"Legal risk is one of the fastest growing threats to small business viability. Yet many remain uninsured simply due to lack of awareness."

(Source: RiskLogic).

Why It Matters in Today's Climate

Australia’s regulatory environment is becoming increasingly complex. From Fair Work compliance to contract law and privacy obligations, businesses today operate in a minefield of potential legal exposure.

With LEI in place, you don’t just get help when things go wrong — you can access early legal advice to nip potential issues in the bud.

Did You Know

Over 70% of small business disputes are settled out of court - not because the business was wrong, but because they couldn’t afford the fight.

Common Scenarios LEI Can Help With

Here are some common situations where Legal Expenses Insurance can come to the rescue:

1. A former employee lodges an unfair dismissal claim — your LEI covers the legal defence costs.

2. A customer disputes your contract terms — you get advice and representation to resolve the issue.

3. The ATO launches a tax investigation — LEI covers your accountant and legal fees.

4. A supplier fails to deliver — LEI helps you recover damages.

5. You’re fined for non-compliance — your policy may help defend the claim or mitigate penalties.

How Much Does It Cost?

Legal Expenses Insurance for a small business typically starts from just a few hundred dollars per year, and can give you access to:

  • 24/7 legal advice helplines
  • Representation in court or tribunals
  • Legal costs covered up to a specified limit (often up to $250,000)

As with any insurance, the devil is in the detail. Not all policies are created equal, so working with an insurance broker who understands your business is key.

Did You Know

Less than 20% of Australian SMEs currently hold Legal Expenses Insurance, despite 1 in 3 experiencing a legal issue each year.

The Bottom Line

Legal issues can arise when you least expect them. And when they do, they’re not just expensive — they’re time-consuming, stressful, and potentially business-threatening.

Legal Expenses Insurance won’t prevent legal issues from happening, but it ensures you’ve got the backup to deal with them when they do.

 

Need help figuring out if Legal Expenses Insurance is right for your business?

At Midland, we specialise in helping Australian small businesses find the right protection. We’ll explain Legal Expenses Insurance in plain English and help you find a policy that suits your needs and budget.

Whether you're a sole trader, growing startup, or established business — our experienced brokers are here to help.

You can call us on 1300 306 571, or contact us online to get a free quote and expert advice.

Request A Quote
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Gary Perera

Senior Insurance Broker

With 35 years’ experience in the insurance industry, Gary is a Senior Insurance Broker at Midland with extensive knowledge across a wide range of business sectors. He specialises in insurance for breweries, distilleries, cafés, restaurants, and manufacturing businesses, bringing a depth of practical insight to every client engagement.

Known for his thorough and considered approach, Gary takes the time to understand how each business operates before delivering clear, tailored insurance solutions. A committed professional, he has completed numerous industry qualifications and is a proud member of ANZIIF, maintaining his expertise through ongoing education and regular engagement with industry developments.

Outside of work, Gary is an avid sports enthusiast who enjoys running, football, and cricket. He remains driven by a simple principle: continuous improvement and delivering the highest standard of advice to his clients.

Angus Matheson

Angus Matheson

Senior Insurance Broker

With more than 21 years’ experience in the insurance industry, Angus is a Senior Insurance Broker specialising in Road Freight Transport insurance. He is recognised for his deep understanding of the transport sector and his ability to deliver tailored risk solutions that address the operational and commercial challenges faced by transport businesses.

Angus takes an empathetic, client-first approach, investing the time to understand each business, its priorities, and its risk profile before providing advice. A committed professional, he holds accreditations with NIBA, ANZIIF, CIP, and QPIB, and remains actively engaged with industry developments through ongoing education and professional involvement. His focus is on delivering reliable protection that supports business continuity and long-term confidence.

Sarah Grose

Sarah Grose

Senior Insurance Broker

With more than 17 years’ experience in the insurance industry -including 16 years with Midland - Sarah brings deep expertise and a genuine commitment to helping clients protect what matters most. Having held a range of roles across the business, including management positions, she has a well-rounded understanding of both client needs and the broader insurance landscape.

Sarah specialises in small to medium-sized business insurance, with particular expertise in the film and television sector, self-storage, and, more recently, breweries and distilleries. Her approach is focused on making insurance clear, practical, and tailored to each client’s circumstances. Known for her approachable and solution-focused style, Sarah builds long-term relationships grounded in trust, reliability, and understanding.

She holds a Diploma of Insurance Broking and remains actively engaged in ongoing professional development to ensure her advice stays current and relevant.

Andrew Woff

Andrew Woff

Senior Insurance Broker

With close to 20 years’ experience in the insurance industry, Andrew is a Senior Insurance Broker at Midland specialising in heavy vehicle and equipment insurance, as well as cover for breweries and distilleries. He is particularly well regarded for his ability to secure tailored, cost-effective solutions for assets involving motors, wheels, or tracks, alongside his strong understanding of the risks unique to alcohol production businesses.

Andrew works with a wide range of clients, from sole traders through to large-scale operations, and is known for his clear communication, flexible approach, and commitment to personalised service. A QPIB-accredited broker and member of NIBA, he maintains high professional standards and remains focused on delivering practical, well-considered advice.

Outside the office, Andrew is a proud father of three and an active community volunteer. His interests in music, electronics, mechanics, and brewing reflect the same curiosity and hands-on mindset he brings to his professional work.

Scott McMurtrie

Scott McMurtrie

Senior Insurance Broker

Scott is a Senior Insurance Broker with over 12 years’ experience supporting Australian small and medium-sized businesses. He specialises in tailored insurance solutions across the Film & Entertainment, Transport, and Manufacturing sectors, delivering advice that reflects each client’s specific risks and operations.

With a strong focus on understanding how businesses work in practice, Scott provides clear, relevant cover recommendations backed by ongoing professional development and industry engagement.

Outside the office, he enjoys AFL, soccer, and music, and values building long-term client relationships founded on trust and reliability.

Beau Runnalls

Beau Runnalls

Senior Insurance Broker

Beau is a senior insurance broker at Midland with seven years of industry experience supporting businesses across Australia. He works across a broad range of sectors, with particular expertise in earthmoving, heavy equipment, trades, and the winery industry.

Known for his attention to detail and measured approach, Beau focuses on delivering insurance solutions that are clear, practical, and free from unnecessary complexity. He remains actively engaged in professional development, ensuring his advice reflects current industry standards and best practice.

Beau places strong value on collaboration and long-term client relationships. Outside of work, he enjoys golf and football, reflecting his team-oriented mindset and active approach both professionally and personally.

Alex Petkovic

Alex Petkovic

Senior Insurance Broker  |  Development & Service

With 27 years of experience in the insurance industry, Alex is a senior broker at Midland, recognised for his depth of knowledge, attention to detail, and straightforward approach. While he works across a broad range of businesses, he has a particular focus on clients in the construction and building sectors.

Committed to keeping insurance clear and practical, Alex places a strong emphasis on honesty and client-first advice. He remains actively engaged with industry developments through ongoing professional development and research, and is also a natural mentor, regularly supporting and guiding emerging brokers within the team.

Joshua-Kerr

Joshua Kerr

National Sales Manager

Joshua is Midland’s National Sales Manager, with more than two decades of experience in the insurance industry. His expertise spans a wide range of insurance solutions, with particular depth in the winery and brewery sectors.

Taking a considered, people-focused approach, Joshua works closely with clients to understand how their businesses operate and the risks they face, allowing him to deliver insurance solutions that are both practical and relevant. He is known for his ability to make complex insurance concepts clear and approachable.

Outside of work, Joshua has a strong connection to community, having spent several years coaching junior basketball and serving as Vice President of a children’s basketball club. Staying closely attuned to industry developments, he is committed to helping clients make informed insurance decisions that support their long-term success.

Justin-Lane

Justin Lane

Director

Justin is a Director at Midland and has been part of the business since 2003. With more than two decades of experience, he works closely with small businesses across Australia, helping them secure insurance solutions that genuinely reflect the way they operate.

Known for his practical, solution-focused approach, Justin places strong emphasis on clarity, reliability, and long-term client relationships. His depth of industry knowledge and consistent, hands-on service have seen him become a trusted adviser to many business owners over time.

Damien Lane

Director

Since 2001, Damien has been central to Midland’s evolution, bringing more than two decades of industry experience and a strong commitment to client-focused service. His expertise spans a wide range of sectors, with recognised depth in the brewery and distillery space.

Working with independent brewers across Australia, Damien helps clients navigate complex operational risks with practical, grounded advice. He is known for his industry knowledge, clear communication, and ability to build enduring client relationships.

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