LegalAdviceZone.com

Pre Paid Legal Services?

Is this a reliable and smart way to have a lawyer for a small business - specificially in the start up phase? I see some of the answers are responding to selling this service as MLM, I have no interest in this piece, just need to know if it's a good alternative to hiring a lawyer for $200/hr.

Public Comments

1. Pre Paid Legal Services are never a smart idea for a small business. Remember, a small business needs money in its early stagest when growth is its main objective. Locking money away in something you might not need is a bad financial move. If you are worried about a future lawsuit, there is what is called "Legal Insurance". You pay a premium each month to recieve an annual amount of legal services for free, or at a discount. The monthly premium is alot more manageable for a small business, and it hedges the risk of a costly lawsuit just as well, if not better, than pre-paid legal services. You can even talk to an attorney around your area, to negotiate a private legal insurance agreement, where you both agree to the terms, that the agreement is only good in his office, the premium amount, the type of coverage (the less items you include, the less your premium should be) Typical Small Business Legal Insurance should include: - 2 Trial Proceedings (Annually) - 5 Court Appearances (Annually) - 10 Hours of General Legal Advice (Annually) - 30 Hours of Litigation (Annually) Remember, this is not something you plan to use every year. Hopefully, you go on each your without ever using this policy. Ask your lawyer to determine your legal risk, and any steps you can take to reduce your risk of a lawsuit. This will bring down your monthly premium. A history of lawsuits in your own name, or your company's name can result in higher risk, and higher premiums. Hope this was informative, best of luck.
2. First and foremost, what type of small business are you running and what do you need the attorney for specifically? If it's to draft/review documents, make phone calls or write letters on your company's behalf to past-due clients, or collect a debt; the Prepaid Legal membership can be very useful. If you're looking to simply be represented and need accessibility to your attorney frequently, go for the $200/hr attorney. Prepaid Legal Services is much like a referral service more or less; you have to do much of the work yourself. Although it has over 1.5 million members, those members still need to access other attorneys to handle more serious and urgent situations.