GREAT 56 IDEA: Buy Prepaid Legal Insurance or Make a Deal with a Law Firm

Did you know that 52 percent of all Americans have some sort of legal problem and one of every three people will need legal advice in the next 12 months?

With attorneys charging an average of $175 per hour, legal bills can gobble up your profits. Even a small legal problem can drag down your morale and create a major distraction. That's why many small business owners are signing up for prepaid legal insurance. One of the oldest providers is Pre-Paid Legal Services® Inc., based in Ada, Oklahoma. The company sells coverage to both individuals and small businesses. For under $100 a month, businesses with fewer than 15 employees and $250,000 or less in net income can have access to experienced business attorneys.

Lawyers can draft and review contracts, write debt collection letters, and deal with leases, partnerships, creditor harassment, and bankruptcy, among other issues. Clients contact the company and within a day or so, get a call back.

Pre-Paid Legal Services, a publicly held company, was founded in 1972. It contracts with 2,700 law firms in 46 states.

You may also be able to cut a similar deal with a small, local law firm. The recession forced many firms to discount their fees, so don't be afraid to ask. You will probably be asked to pay a monthly retainer, but if you have legal issues, it may be worth it. Also check out RocketLawyer.com, an online legal services company.