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Small Business
Buy legal insurance
December 1, 2000: 12:57 p.m. ET

Many small-business owners buy insurance to keep legal costs down
By Jane Applegate
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NEW YORK (CNNfn) - Did you know 52 percent of all Americans have some sort of legal problem? And that one of every three people will need legal advice in the next 12 months?

With attorneys charging an average of $175, legal bills can eat into your profits. Even a small legal problem can drag down your morale and your business. That's why many small-business owners are signing up for prepaid legal insurance.

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  Shop around for the best deals, but consider this type of insurance as a way to sleep more soundly at night.  
     
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One of the oldest providers of this benefit is Pre-Paid Legal Services Inc., based in Ada, Okla. The company sells coverage to both individuals and small businesses.

For a modest monthly fee, business owners and their employees can have access to experienced business attorneys. Their team of lawyers can review contracts, write debt collection letters, and deal with leases, partnerships, creditor harassment, and bankruptcy, among other problems. If you need additional services, you are given a 25 percent discount off their regular legal fees.

To get help, call the toll-free consultation line. A representative collects all the details and refers you to the right person in the firm. You'll usually get a call back by the end of the next business day, according to company officials.

Pre-Paid Legal Services (PPD: Research, Estimates), a publicly held company, was founded in 1972. It contracts with law firms in communities across the nation.

Shop around for the best deals, but consider this type of insurance as a way to sleep more soundly at night. graphic
Excerpted from 201 Great Ideas for Your Small Business, Copyright 1998 by Jane Applegate. Published by arrangement with Bloomberg Press. Excerpts appear on Saturdays on CNNfn.com.

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.
© 2012 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy. Ad choices .