Prepaying for legal services through a legal insurance program may help small businesses cut expenses. Paul Gordon's cleaning company saves money through a prepaid legal program where he pays $900 per year for access to attorneys. This is cheaper than paying $150 per letter for legal services. Almost one-fifth of HR professionals said their companies offer some kind of legal services benefit. Pre-Paid Legal Services has over 1.5 million members and Glantz & Glantz law firm provides its services in South Florida, handling about 75% of its caseload from Pre-Paid Legal members. The prepaid program provides affordable access to legal services.

1. March 12-18, 2010
Prepaying for legal services may help companies cut expenses
by Paul brinkmann
Paul Gordon was getting disgusted with
paying a lawyer $150 every time he needed
someone to write a letter to a client who
wasn’t paying on time.
Gordon’s small cleaning company, Paul’s
Cleaning Services in Pompano Beach,
could not afford such fees. Three years ago,
Gordon signed up for one of the country’s
biggest legal benefit providers for a legal
insurance program.
“Paying $150 just for a letter to be sent
out? That’s crazy,” he said. “The prepaid
program much better. It saves us money.”
Gordon said he now pays a flat fee of $900
a year, up front, through Oklahoma-based
Pre-Paid Legal Services. For that, he gets
access to attorneys at Plantation-based law
firm Glantz & Glantz.
“This is cheaper and so much easier, in
MarK FrEErKS
terms of budgeting,” Gordon said. “In one
Paul Gordon says the prepaid program ‘is cheaper and so much easier, in terms of budgeting.’
year alone, I had $1,500 in legal fees for 10
letters that went out.” additional services Companies o ering legal
Almost one-fifth of human resources
THE DETailS as needed, but at services as a bene t
professionals said their companies offered Pre-Paid legal Services’ plans for small a reduced rate of 35% 33
some kind of legal services as a benefit business in South Florida: $155 an hour. 30%
in 2009, according to a survey by the Glantz said 27
international Society for Human Resource n 1-50 employees: $75 a month plus a the firm services 25% 24 24
Management. $10 one-time enrollment fee about 40,000 21
Ada, Okla.-based Pre-Paid Legal says it members in South 20%
n 51-99 employees: $125 a month plus a
has memberships available in 48 states and Florida. He said 15%
$10 one-time enrollment fee
four provinces, with a home office staff the recession bit
of more than 700 supporting 1.5 million into that number 10%
members. Pre-Paid Legal has three plan levels – for a little, but didn’t
5%
Glantz & Glantz is the sole provider of individuals, small businesses and group of say by how much.
Pre-Paid Legal’s services in South Florida, 100 or more. The law firm does 0%
’05 ’06 ’07 ’08 ’09
said Ron Glantz, the law firm’s managing Nova Southeastern University offers the not market the Source: Society for Human
shareholder. benefit to employees who opt in. There is Pre-Paid Legal Resource Management
The work flowing in from Pre-Paid Legal’s no co-payment. The paycheck deduction for plans.
members accounts for about 75 percent of large organizations can be as little as $15 a Pre-Paid Legal Services has independent
the 32-attorney firm’s caseload, he said. month. associates in South Florida who often work
“Right now, of course, we do a lot of The law firm is paid for services to Pre- from home, signing up organizations.
consumer law, for people who owe money Paid Legal members in two ways: Cindi Pletch is one of them. She said
through foreclosure or credit cards,” Glantz n Per member, per month to provide the spends her time offering legal and identity
said. “And we do a lot of wills in probate, basic services under the legal plan, which theft coverage, mostly to small business.
and family law.” includes consultations, reviews, letters, traffic Glantz said the main benefit is creating
He said foreclosure defense has grown ticket defense, drawing up a will and health affordable access to the legal system.
dramatically in the last few years. He said it’s care proxy (designation of a decision-maker “Hiring a lawyer is difficult to afford for
fairly easy to defend people in foreclosure for health care issues for someone in the event most people,” he said. “From an employer’s
cases now because of the large volume of he/she is unable). standpoint, it’s good for employees have
cases. n The firm is also paid by individuals for better access to the legal system.”
Reprinted with permission from the South Florida Business Journal. ©2010, all rights reserved. Reprinted by Scoop ReprintSource 1-800-767-3263.