Legal Expenses Insurance | Master Builders Insurance Brokers

mbais product legal expenses insurance

Legal Expenses Insurance

Helps you pursue or defend against contractual disputes.

Cover for

Legal Costs



Payment disputes
Unfair allegations of faulty workmanship
Allegations of not complying with the contract
Breach of contract with suppliers/manufacturers
Breach of contract with subcontractors/trades
Property disputes

What is Legal Expenses Insurance?

In today’s increasingly competitive and litigious environment, disputes and legal action are on the rise.

With legal costs increasing, often the potential cost can prevent access to justice, with business owners having to consider whether or not to participate in legal actions, even when they have a strong case. Legal Expenses Insurance can provide you with cover for legal costs incurred in both pursuit and defence of contractual disputes.

A Contract Works and Liability policy typically includes coverage for legal expenses related to defending claims for insured damage and bodily injury. Often builders become involved in costly contractual disputes with clients, subcontractors, or suppliers, which don’t involve any property damage or injury, and as such fall outside of the scope of cover under Contract Works and Liability insurance.

Contractual disputes can involve significant amounts of money and can take months or even years, to legally resolve, which can result in costly legal bills.

Key benefits
icon apprentice
Covers legal costs of pursuing subcontractors for rectification of faulty work
icon contract liability
Covers breach of contract with subcontractors or trades where a written contract is in place
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Covers legal costs in recovering unpaid funds through defending allegations of defective work
icon property types
Covers legal costs related to property disputes with a landlord

Why do you need this policy?

Here's an example:


A builder was engaged to construct a new garage with a second storey extension above.

The usual quality standards were in place, and they complete the project on time. However, the final invoice remained unpaid by the due date. Upon chasing payment, the owner refused to pay the final invoice due to alleged poor finishing.
The insured offered to review and undertake any necessary works, however, was informed that the owner wanted no further works performed. Our insured had no option but to notify the owner that legal action would follow to recover the unpaid amount.

The insured was successful in court for recovering damages of $45,000. The policy covered the majority of the $20,000 legal costs.

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Legal Expenses Insurance is a cost effective risk management technique, enabling you to engage lawyers when you need it most.

With the amount of contractual agreements our builders enter into as part of the usual build process, we believe expanding your insurance program with Legal Expenses cover provides valuable support to your business.

Joe Keiper Southern Region Manager

Why choose Master Builders Insurance Brokers?

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Talk to your local specialist:


Brent  Cooper
Brent Cooper
Business Development Team Leader

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