Cover for lawyer-appointment fees, litigation costs and arbitration/mediation costs when a company or individual is drawn into a civil or criminal dispute. Specialised for ordinary litigation costs that liability insurance does not cover.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Cover for lawyer fees, litigation costs and arbitration/mediation costs when a company or individual is drawn into a civil or criminal dispute. Specialised for ordinary litigation costs that liability insurance does not cover.
General commercial disputes.
Personal-dispute defence.
Medical and legal disputes.
| Prior legal advice | Hotline service |
|---|---|
| Plaintiff & defendant | Both claim and defence |
| Policy period | 1 year |
|---|---|
| Insurer | Hyundai |
| Limit | Per-case and aggregate limit |
| Turnaround | 2–3 weeks |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Situations that come up often in a commercial dispute — a five-scenario self-check
A contract or payment dispute with a counterparty produces sizeable legal costs such as lawyer fees.
The defence cost of a dispute drawing in a major shareholder or director personally can be a burden.
Professionals and the self-employed can bear legal costs in a work-related dispute.
Lawyer fees arise when you must raise a suit first to protect your rights.
Responding to an administrative disposition also incurs legal-advice and representation costs.
Legal expense insurance is often confused with liability insurance, but the "direction" of the cost it handles is different. Liability insurance's defence cost operates when the insured becomes the "defendant" and is sued for compensation by a victim. Legal expense insurance, by contrast, also covers the lawyer fees and litigation costs of a suit, arbitration or administrative dispute the company raises first as "plaintiff". As when a counterparty fails to pay and you must sue, the core is handling the legal costs of protecting your rights in an ordinary commercial dispute. But a claim that cannot be litigated, a deliberate or wrongful suit, and a sanction such as a fine or penalty are outside cover.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
Liability insurance handles defence costs as defendant on a compensation claim. Legal expense insurance differs in also covering the costs of a suit the company raises as plaintiff.
A claim that cannot be litigated, or a deliberately wrongful suit, is not covered. This insurance handles the legal costs of a legitimate dispute.
Legal expense insurance covers legal costs such as lawyer fees. A sanction such as a fine or administrative penalty imposed as a result of the dispute is not itself covered.
The questions decision-makers ask most when considering legal expense insurance
It covers legal costs — lawyer-appointment and advice fees, litigation costs (stamp, service, appraisal), arbitration and mediation costs — in a civil, criminal, arbitration or administrative dispute a company raises as plaintiff or is drawn into.
Liability insurance's defence costs operate when the insured is sued as defendant. Legal expense insurance differs in that it also covers the costs of a suit the company raises as plaintiff.
It is mainly used for ordinary commercial disputes such as a contract or payment dispute with a counterparty, and is also used for responding to an administrative disposition.
Exclusions include a claim that cannot be litigated, a deliberately wrongful suit, insurance fraud, and political/religious disputes.
Legal expense insurance covers legal costs such as lawyer fees. A sanction such as a fine or administrative penalty imposed as a result of the dispute is not itself covered.
The insurer assesses it on the company scale and sector, the main contract types and dispute risk, the limit and past dispute history. The exact premium and acceptance terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
