There are two type of insurance which may help you pay any legal costs which are not covered by the no win no fee arrangement. One is called ATE (after the event) insurance and the other BTE (before the event) insurance.
Providing you follow our advice during the life of your claim there are very few actual legal costs which are not covered by the no win no fee agreement that we will usually run your claim under in any case. We still advise in most cases that it is better to be safe than sorry and to ensure that you have some kind of legal expenses policy in place in the highly unlikely event that you should become liable to pay any legal costs.
After the Event Insurance (ATE)
After-the-event insurance is taken out after an event, such as an accident which has caused an injury. It insures you for disbursements, as well as any costs should you lose your case. It is usually used by people who do not have before-the-event insurance (BTE). Where appropriate we would take out this policy on your behalf under your instructions.
If you lose the case, then the insurance company will pay the opponent’s legal costs and expenses, as well as your own expenses such as medical experts fees. We take on personal injury cases on a “no win no fee” basis, and may require you to take out after-the-event insurance so that costs will be covered if the case is lost. The premium payments will be put off until the end of the case.
Where the insurance policy was taken out on or after 1 April 2013, its cost will not be recoverable from the Defendant except for clinical negligence cases where some of the premium is recoverable and some must be paid for by you, but at the end of your case and only out of any damages you receive. The premium will be a maximum of 10% of your compensation for past losses and your injury only (so not, for example, from future loss of earnings).
So if you received £10,000 for your injury and £100,000 for your future loss of earnings the insurance would still only cost up to a maximum of £1,000 which is 10% of the £10,000 leaving the £100,000 untouched.
Before the Event Insurance (BTE)
Before-the-event insurance, is something you may already have as part of an existing policy to protect you against potential legal costs in the future. These costs often include fees of solicitors, barristers and expert witnesses, court fines and fees, and any legal costs awarded to the other side. Before-the-event insurance is generally paid on an annual basis to an insurance company. It is often sold as part of a home or car package, and is also sometimes offered as a benefit to members of a trade union or association.
If you need more information about Legal Expenses Insurance or the claims process or if you or someone you know wants to speak to us, entirely in confidence, about an injury you have suffered or if you just want to see if you can make a claim then then please call our head of negligence Michael Shaw on 0800 1 444 111 or email him at email@example.com. Alternatively you can use the enquiry form situated at the side or at the foot of this page.