Legal insurance is becoming an increasingly vital benefit for employees and employers alike. In fact, 85% of U.S. individuals have experienced a legal event in the past three years. These legal issues range from bankruptcy to contract disputes and adoption to estate issues.¹ Providing legal insurance not only helps employees navigate these challenges but also boosts workplace productivity by reducing stress-related distractions.
However, not all legal insurance plans – or carriers – are created equal. The difference lies in the details: the breadth of coverage, the quality of the attorney network, the ease of accessing benefits, and the carrier’s financial stability and transparency. Choosing the right legal insurance carrier ensures employees can resolve personal legal challenges efficiently and effectively, which benefits both the employee and the employer.
The Tangible Impact of Legal Insurance on Workplace Productivity
Legal issues don’t just stay at home – they follow employees to work, creating significant distractions that affect overall productivity. According to a study by the American Psychological Association, 60% of employees report that stress, including legal challenges, negatively impacts their job performance.² Moreover, the Society for Human Resource Management found that employees who utilize comprehensive legal benefits are 35% more likely to feel supported by their employer, leading to increased retention rates.³
By offering access to a high-quality legal insurance plan, employers can actively reduce these workplace disruptions. Employees with access to legal insurance are more likely to resolve personal challenges efficiently, allowing them to stay focused and productive during the workday. This means fewer missed deadlines, better collaboration, and a stronger sense of loyalty to their employer.
5 Questions to Ask Your Legal Insurance Carrier
When evaluating legal insurance carriers, it’s important to ensure you’re selecting one that prioritizes transparency, quality, and value. Here are five critical questions to ask before choosing a legal insurance carrier:
- What is your four-year performance? Understanding past performance can give you insight into the carrier’s reliability and consistency.
- What level of debt are you carrying? A financially stable carrier is better equipped to deliver long-term value.
- What is your retention rate? High retention rates often indicate satisfied members and effective services.
- How transparent are your processes and costs? Transparency is critical to understanding the full value of your legal insurance.
- What sets you apart from competitors? Look for carriers with a proven track record of innovation, customer care, and comprehensive coverage.
What to Look for in a Legal Plan
When it comes to selecting legal benefits, it’s crucial to evaluate plans carefully. You should consider the following factors to ensure employees have access to the best resources:
- Transparency: Choose providers that offer clarity in how benefits are delivered and costs are managed.
- Broad Coverage: Look for plans that cover a wide range of legal issues, from family law to real estate disputes.
- Network Quality: Ensure attorneys are highly vetted and geographically accessible.
- Ease of Use: Benefits should be intuitive to access, with digital tools that simplify the process.
- Post-Employment Coverage: Plans that extend benefits after employment ends provide added security.
- Supportive Customer Care: A reliable customer care team can make a significant difference during stressful situations.
- Vetted Professionals: Attorneys should be individually credentialed and recredentialed annually to ensure quality service.
- Transparency and Choice: Members should be able to search for attorneys based on ratings, reviews, and specialties, ensuring informed decisions with no surprises.
- Comprehensive Solutions: Coverage should extend beyond basic legal matters, ensuring employees receive help where they need it most.
Why Transparency Matters
Transparency is the cornerstone of effective legal insurance. Employees need to trust that their legal carrier is providing access to top-tier attorneys, clear coverage, and no hidden fees. For employers, transparency ensures there are no surprises when it comes to costs, claims, or performance.
Employers should look for legal insurance carriers that are upfront about their processes, financial stability, and the long-term value they bring to members. Transparency builds trust, which is essential in any legal benefit plan.
The BeneRe Legal Difference
If you are looking for a great option for legal insurance, BeneRe Legal (managed by ARAG) is the only solution offered through an innovative group captive model, maximizing value for employees while prioritizing transparency and accessibility and all of the benefits listed above.
The group captive structure – the first of its kind in the supplemental benefits industry – also provides the potential for dividends, which are earned from day one but distributed annually following a three-year vesting period. While dividends are not guaranteed, employers benefit from claims transparency and zero downside financial risk. Any dividends earned through the program must be reinvested in employee health and wellness initiatives, further enhancing the value of the benefits package for the entire workforce.
With BeneRe, employees and employers alike can see the true value of their coverage without hidden costs or surprises. It’s an open and shut case in the most positive way for everyone involved.
When you’re ready to make a change to increase the value of the voluntary benefits you offer employees, ask your broker or contact the team at BeneRe for more information.