Does Your Small Business Need Prepaid Legal Services?

Most small business owners do not see a need to keep an attorney on retainer. It's expensive and it is rare for a small business owner to need the services of an attorney. However, there are plenty of ways that an attorney can help you keep everything safe and legal in your small business, which is why prepaid legal services are so valuable. If you need the services of a qualified attorney every so often, but don't want to pay to keep one on retainer, you might need prepaid legal services.

What are prepaid legal services?

Simply put, prepaid legal services are a service offered to business owners. For a monthly fee (ranging from $11 to around $80), you get a set number of services for free whenever you need them. Usually, a prepaid legal service contracts with a law firm within the state, so you will likely deal with a large number of lawyers rather than one specific attorney. When you have a problem or need advice, you simply contact the legal service company and they will put you in contact with legal counsel.

What is included in the monthly fee?

That all depends on how much you are paying and what the prepaid legal services offer. For example, one legal service in Houston offers unlimited hours of telephone consultation, fifteen contract reviews (edits) per quarter, up to twenty debt collection accounts per month and a 20% discount on all other legal services for $45 per month. Sometimes these services offer different packages, while others have one set package for every customer.

How do I know that the attorneys are competent?

The best way to check on the legal services you are considering is to visit the Martindale-Hubbell website. There you will find reviews for attorneys all across the United States, and you can learn what the experts have said about those particular attorneys. The prepaid legal service should also be willing to answer all of your questions, so watch out for shifty responses or vague explanations.

What if I need representation in court?

Prepaid legal services will not cover representation in court; however, you will probably get a discount on legal services for being a member. You'll have to ask the specific legal service about their policy on this matter, but you should expect to be given a 10-30% discount on legal representation in court.

What are the benefits of prepaid legal services?

The largest benefit of prepaid legal services is the price. If you were to hire an attorney on retainer, you would probably be shelling out thousands of dollars a year in legal fees, and if you run a small business, you won't use up that much of the attorney's time. Not only that, but most prepaid legal services have a guaranteed response time, which means that you can get questions or problems addressed quickly. You will also have an established relationship with a law firm should you ever get into legal trouble, which can be invaluable.

What are the drawbacks to prepaid legal services?

Most small business owners who use prepaid legal services are largely happy, but you also have to realize that you won't be building a relationship with a specific attorney. You might call the legal service ten times in a few months, and speak to a different lawyer each time. Further, there might be a conflict of interest if you develop a conflict with another small business that uses the same prepaid legal services. Be sure to ask plenty of questions before signing up.