Canadians handling legal disputes alone due to cost worries

Canadians handling legal disputes alone due to cost worries | Insurance Business Canada

Legal Insights

Canadians handling legal disputes alone due to cost worries

How can brokers help?

Legal Insights

By
Mika Pangilinan

Some 46% of Canadians who have faced legal disputes chose to navigate their issues without the help of a lawyer, according to a recent survey by ARAG.

Participants polled by the legal expense insurance specialist said the primary reason for this choice was the costs associated with hiring a lawyer.

ARAG found that 55% of individuals who have dealt with legal issues spent between $1,000 and $9,999 on lawyers and other fees, while 20% surpassed the $10,000 mark.

Additionally, 65% of participants said their legal issues had a significant to moderate impact on their personal finances.

Jeff Kless, ARAG’s VP of marketing and strategic initiatives, said the statistics point to the fact that Canada is clearly grappling with an “access to justice” issue.

“Public studies show that nearly half of Canadian households are just one paycheck away from missing their financial obligations going forward,” Kless told IBTV.

“It protects their families’ budgets, and it saves them time and effort,” he said. “And when you combine all those things together, that gives your customers confidence that they’re able to handle unforeseen legal events.”

Addressing the potential skepticism from clients who may feel immune to legal challenges, Kless suggested starting a discussion by posing relevant questions.

Brokers can ask clients about scenarios like employment disputes or contract issues in order to gauge their awareness of potential legal risks and their ability to afford legal representation, he said.

“Legal expense insurance is a solution when it comes to handling a contract law, employment law tax audits, and so much more,” Kless added. “The policy will do the heavy lifting for you. And you’re not going to receive a legal bill at the end when you are trying to pursue or defend your legal rights.”