What is CLEI or Commercial Legal Expenses Insurance?
CLEI is a type of insurance coverage which protects a particular company, commonly known as a policy holder, from spending money in cases which involve commercial transactions. In other words, CLEI is the blanket that protects a company policy-holder from expenses incurred during litigation.
How Does CLEI Differ from Legal Expenses Insurance?
CLEI or Commercial Legal Expenses Insurance and Legal Expenses Insurance are more or less the same. The notable difference between the two is that the former is more general which covers most commercial transactions that a company engages in. On the other hand, the later is more focused on property-related cases. This means that the former is always chosen by companies in order to protect their interests from any legal dispute that may arise from transactions involving properties owned by the company policy-holder.
Commercial Legal Expenses Insurance offers various advantages to a company. One evident advantage of CLEI is that it protects the money of the company. A business undoubtedly needs cash or money for it to continue operations. In the event that a company is involved in a suit, expenses are bound to come. With Legal Expenses Insurance, the expenses will be limited to a point specified in the agreements on the contract. That is why it is important to know the stipulations contained in the contract so as to likewise know the limits set forth in case of legal expenses.
Another notable advantage of this insurance policy is the fact that it protects the properties of the company. There are times when the company’s money will be depleted and will be forced to sell their property to settle their debts. Well with this insurance coverage none of this will ever happen – save for those incurred in bad faith and the like. One thing that companies want to avoid is to sell their properties. This is what Legal Expenses Insurance offers to you as a shareholder of a company.
The payment schemes offered by insurance companies to others are also worth mentioning because it offers various payment schemes that surely benefit the company. Many companies out there are reluctant of getting insurance coverage because of the high premium rates. However, it is worthy to note that security should be the utmost concerns of owners and shareholders alike to keep the company up and running.
Get It or Forget It?
The choice of having this insurance coverage boils down to you. If you want to protect your company from expenses that may arise of out litigation proceedings and the like then it would be best to get this insurance coverage. Conversely, if you are thinking about the added expenses when you get this policy then you can always choose not to get this coverage.