Guide to Prepaid Legal Services for Small Business

Review available plan types

In a prepaid legal plan, you typically pay in advance to cover the cost of future legal services. For a monthly fee, a prepaid access plan will get you phone consultations and a set number of additional services. A group legal plan generally lowers legal costs by discounting legal fees of a particular lawyer or firm. A comprehensive prepaid legal plan costs more than an access plan, but it covers an average of 80 percent of a person's expected legal needs, far more than an access plan.

I recommend: See different legal plan choices at the American Prepaid Legal Service Institute (APLSI) Web site; you can also peruse its directory of prepaid plans.

Should you wait until you really need legal help?

One advantage of signing up for a prepaid legal plan is that you can tap legal help more quickly when you actually need it. Without such a plan, you might delay asking for advice because you don't want to pay a steep one-time fee – and holding off on advice might worsen your situation or at least delay resolution.

I recommend: Prepaid legal plans are available through LegalSurvival.com, Legal Club of America, Advance Pay Legal Services, Preferred Legal Plan, and Pre-paid Legal Services, Inc.. (Business plans aren't available in all states through every vendor).

Can your employees benefit?

Aside from using a prepaid legal service for your business, you can offer coverage to employees and their families as part of a benefit package.

I recommend: To set up prepaid legal services as an employee benefit, you can contact Pre-paid Legal Services, Inc., LegalSurvival.com, or Legal Club of America.

Who will be helping you?

Check the firm you'll be working with under a prepaid plan. Does anyone at the firm have small business experience, especially within your industry?

I recommend: Ask the plan for the legal background of the attorneys who will be on call or search for their backgrounds yourself on Martindale.com.