21st April 2010
First and foremost an after the event ligitation
policy covers the opponent’s costs and own disbursements in civil
litigation cases across a wide spectrum of categories of case. It can be purchased for nearly all areas of
litigation and is frequently used in both civil and commercial disputes. This
type of insurance is usually purchased for cases requiring modest limits of
indemnity, through to big ticket, heavyweight litigation requiring over
millions of pounds of cover for legal costs. Each case is usually individually
assessed within the category of case involved and cases with stronger merits
may also attract lower premiums. In some case, if the client is
unsuccessful and there is a claim on the policy, the cost of the premium forms
part of the claim so that your client does not have to pay. This can be quite a
useful negotiating tool once the opponent knows insurance is in place.
the event ligitation insurance companies are quite capable of handling the most
diverse range of commercial disputes. It helps you to unlock
litigation which may otherwise not be pursued because of the risk of losing a
case and having to pay the opponent’s costs. Premiums are usually recoverable
and proportionate to the risks in the case.
type of insurance may cover contractual disputes, landlord and tenant and
property disputes, copyright and intellectual property disputes, banking and
financial disputes, partnership disputes, clinical negligence (specialist and
separate policy for this area), professional negligence, commercial agency
disputes, insolvency related cases and a whole lot more.
3. After the
event litigation insurance policies usually involve individual cases which require individual bespoke policies, shchemes as
well as big risks which require a different approach. The standard cover is for
costs incurred after the inception date of the policy up to conclusion of the
legal action, however (subject to negotiation) the policy may also cover costs
already incurred prior to the policy being taken out. There is
usually no upfront premium payment.
4. It also covers the client or insured against what
could prove to be substantial costs that the client or insured will be liable
for should the legal action prove unsuccessful.
Along with recovering your costs and disbursements, the premium can be
recovered from the unsuccessful opponent.
event litigation insurance companies can provide you with intelligent support
and decisions throughout the life of the policy, allowing you to focus on the
litigation. This would help to protect a solicitor’s client (usually the claimant,
but it could be the defendant in a legal action) when or after that person or
entity becomes aware of the need to litigate to protect their interests. This
type of insurance is taken out once legal proceedings are
contemplated and would give you a strong offering to bring in new clients which
would otherwise be wary of pursuing litigation. The insurance will
indemnify the insured’s own disbursements and his opponent’s costs and
disbursements in the event that the legal action is ultimately discontinued or
lost at trial.