Prepaid Legal Plans and Reviews

Legal fees can be devastating for a small business," says Robert Andrysco, owner of Talking Pets Inc. From routine contracts, tax questions and debt collection to trademark and copyright concerns, Andrysco frequently needed to consult a lawyer - at $150 an hour. Although he paid the law firm $3,000 to $15,000 per year, his business was a small percentage of the firm's client base. "I felt I wasn't important enough to them," he says.

Then a friend approached him about a prepaid legal plan for small businesses. For $59 per month, Andrysco could receive unlimited telephone consultation with a lawyer, review of three contracts per month, unlimited review of other business documents, up to 10 debt collection letters per month and discounts on other legal services. Andrysco signed up with Prepaid Legal Services Inc., a rapidly growing company based in Ada, Oklahoma.

A week later, a former vendor attempted a $2,100 credit card charge-back for equipment he claimed he had returned to Talking Pets but did not. Andrysco called Pre-Paid Legal Services Inc. The lawyer suggested how to word a letter to the credit card company. "I faxed it over, the attorney made changes and faxed it back, with a powerful closing," Andrysco says. The letter convinced the company not to debit his account.

Prepaid legal plan services are growing rapidly. Although most are designed for individuals, a few nationwide firms offer legal plans tailored to small businesses. By making legal advice affordable, the plans encourage business owners to prevent problems before they happen.

Preventive law makes a lot of sense, but many cash-strapped small-business owners take their chances rather than pay for it. When you've prepaid for legal counsel, though, you're more likely to ask for advice. "Prepaid legal plans encourage you to call before a problem becomes big," says Alec Schwartz, executive director of The American Prepaid Legal Services Institute.

Some observers compare prepaid legal plans to Health Maintenance Organizations (HMOs) because of the wide range of services offered for a low, set price. Like HMOs, prepaid legal plans have collective bargaining power. Many doctors and lawyers find it worthwhile to offer low-cost services in exchange for a greater volume of business. Typically, a plan contracts with one law firm in each state to handle routine matters; specialists are usually available at reduced rates.

The rest of this article is at http://www.LegalPlanReview.com