ARAG Provide legal services and insurance, Essential Business Legal covers legal expenses if your client’s business is involved  in certain legal disputes. The policy is administered by ARAG plc, and underwritten by Brit Syndicate 2987 at Lloyd’s.

Services and Benefits

Alongside the core legal expenses insurance, Essential Business Legal provides a range of services and benefits for you and your client. Access is available 24/7, 365 days a year for the following:

  • Legal Advice: Confidential legal helpline to provide advice on business matters
  • Counselling Helpline: Trained counsellors provide employees with help and support over the phone
  • Tax Advice: Open during office hours, the tax advice line assists with all tax-related issues
  • Business legal services online: Personalise and download a wide-range of legal documents

Policy Coverage

Essential Business Legal* responds to a generous range of legal disputes that can arise from your clients’ day-to-day business activities.
  • Employment Protection and Compensation Awards:Provides protection from disputes with past, present or prospective employees, including payment of legal costs and compensation awards
  • Tax Protection: Covers a formal aspect or full enquiry into your clients' business tax affairs, IR35, PAYE compliance disputes and appeals against an assessment by HM Revenue and Customs relating to VAT
  • Maximum amount payable: £100,000
*Exclusions, limitations and excesses apply; please refer to the Essential Business Legal Policy Wording for full details.

Why do you need commercial legal insurance?

Employment Protection

  • The Employment Tribunals Since the abolition of fees in July 2017 HMCTS has issued two quarterly bulletins. The first of these shows that for July to Sept 2017 there was an increase of 64% in the number of  single claim receipts compared to the same quarter in 2016.In Q4 – Oct to Dec this figure had increased to a 95% increase over Q4 the previous year.The HMCTS stats can be found here 
  • See Figure 1 on page 2 which shows receipts in a graph format.
  • ACAS also publishes figures which show cases referred for early conciliation.

  • The average cost for an employer to defend themselves at tribunal is £8,500 as compared to an average settlement payment of £5,400, therefore encouraging employers to settle even if the claim is unfounded. (Source: British Chambers of Commerce Press Release, 5/1/11: BCC calls for reform to employment tribunal system )

Tax Protection

  • A typical tax investigation lasts 18 months, and incurs typical fees of £3,000


How do I claim?

As soon as you become aware of a potential dispute with another party or HMR&C, please contact the Claims Department, as detailed within your policy document, to request a claim form for completion. Please do not appoint your own solicitors or Accountant as these costs will not be met by your policy.

Employment Protection

  • Contact should be made as soon as you receive any correspondence from the Employment Tribunal, or a solicitor acting on behalf of the employee, providing this is not in relation to internal grievance or disciplinary action. If matters are still going through internal procedures, please contact the telephone Legal Advice Line to obtain free telephone advice. Details can be found within your policy wording.

Tax Protection

  • Once you, or your Accountant, receive contact from HM Revenue & Customs advising of an enquiry; you wish to appeal an assessment or certain compliance disputes arise, ARAG should be advised straight away.
Privacy Policy
©2018 Craft Bakers Association