Legal Expenses Insurance or Before the Event Insurance
It may be the case that you have the benefit of Before the Event/legal expenses insurance and you should make enquiries in that regard. Legal expense insurance is often included as an additional benefit on insurance policies and premier banking packages. If you do have existing insurance, there is usually a time limit for making a claim for your legal costs and it is therefore important to take steps to notify the insurer without delay.
After the Event Insurance
After the Event insurance for your opponent’s legal costs and/or disbursements can be purchased to cover the risk of paying some of the expenses of litigation. After the Event insurance policies will not normally provide insurance cover for your own solicitor’s fees. Typically, insurers will require your case to have prospects of success of 60% or more in order to offer any insurance product. It is therefore advantageous to seek legal advice in early course, in order that prospects of success can be assessed and if necessary, where a broker or insurer require a barrister’s opinion, a barrister can be instructed to advise.
Generally, the premium paid for an After the Event insurance policy is not recoverable from your opponent if the litigation is successful. Payment of the premium for an After the Event insurance policy may be deferred until the conclusion of the litigation and/or the premium may be self-insuring which means that it is not payable if the litigation is unsuccessful.
Wright Hassall is not an insurance broker but we can assist you in making an application to an insurance broker or an After the Event insurer and advise you upon the suitability of the terms of any insurance policy which is offered.
It is not guaranteed that an application will lead to insurance products being offered or that any products which are offered, will be sufficient to cover all of the legal costs, or that payment for the premium will be deferred and/or self-insuring.