After The Event Litigation Insurance Can Make Any Claim Straightforward

25th June 2010

after the event litigation insurance policy is meant to protect a

solicitor’s client after that person or entity becomes aware of the need

to litigate to protect their interests. The client can be either the

claimant or a defendant in a legal action. This type of insurance is

relatively new to many people and has not been particularly popular

within the commercial litigation sector. It is all due to its quite high

premiums and tough application processes, which can make the product

really unattractive to claimants and their representatives. However, due

to the increasing demand of this insurance, you can now get more

innovative and variety of these products to assist you in difficult


Whatever the nature of your business and your instructions, there are

many insurance companies who can tailor a fee charging structure

according to your specific requirements.

• After the event litigation insurance policy is to offer cover to the

client or insured against what could possibly be the substantial costs

that the client or insured will be liable for should the legal action

prove to be unsuccessful.

• Most companies are keen on offering not only a choice of commercial

litigation insurance policies but also, by ensuring that the insurance

is reflective of the needs of solicitors and also that of their clients

in this area.

• Some of the fast track after the event litigation insurance policies

are quite simple to understand, with fast application process for

straight forward, lower value commercial litigation claims. You can also

take advantage of bespoke policies, which are specifically designed to

the client’s individual case, providing varying levels of indemnity for

higher risk as well as higher value claims.

• Depending upon the volume of work, some providers can offer very

competitive rates for secondments. Their application procedure, systems

and processes are quite cost-efficient as well as user friendly.

• In some cases, there is a fixed fees on a work product based on the

scope, complexity and estimated time required to undertake a piece of

work. The premium is usually deferred until the conclusion of the case

and is often recoverable from the other side if you are successful in

the case. It may always not be the case, but you could also get discount

rates, for example, if you are unsuccessful in your dispute, the

insurance company will bear the cost differential between their normal

fees and the discounted fees.  However, any deficit must be borne by the

client, himself. In event of unsuccessful dispute, the client will have

to pay the fees and expenses of the other side.

• This type of insurance usually covers many things like professional

negligence, property disputes, defamation, contractual disputes,

employment disputes and many more.

After the event litigation insurance policy is often taken out after a

dispute has arisen. The policy will offer coverage for your own expenses

such as counsel or expert's fees as well as against any order to pay

other party’s costs and expenses in the event that you are unsuccessful.