Royal & SunAlliance Healthcare & Assistance has launched two new legal expenses products – Essentials and Selections.

Both provide a 24-hour legal advice line, personal injury cover for employees and a BusinessCare manual containing information sheets and flow-charts.

Essentials will provide legal expenses protection to small and medium-sized businesses. Selections will allow policyholders to opt for the services of their own legal representative in the majority of areas or a panel solicitor at a discounted premium. The products will be branded under the Healthcare & Assistance name but RSA's subsidiary company FirstAssist will provide the legal services.

They have been developed as a result of changes in legislation, which could leave businesses facing financial losses and legal action.

These changes have increased claim limits under the Employment Relations Act 1999. The limit for unfair dismissal awards has increased from £12,000 to £50,000, and sex, race and disability discrimination awards are unlimited. There are also 26 new rights for the employee to act against their employer under this Act. The new Data Protection Act 2000 has also imposed stricter rules on the content of information held by businesses.

RSA's legal expenses manager, Peter Smith, said: "We have undertaken comprehensive research, and listened to broker feedback in developing these products, which anticipate and will respond to changes in the litigation landscape.

"For possibly the first time, brokers will be able to tailor legal protection cover to the needs of individual businesses."