Litigation insurance is available to cover potential costs during a legal dispute. There are various forms available, the most common being ‘After the Event’ (ATE) insurance which covers legal costs encountered during the court process.
ATE insurance covers the potential loss and costs incurred if a legal claim is unsuccessful. ATE insurance removes the initial costs of litigation as premiums only become payable if and when the claim is found to be successful. Therefore, insurers usually assess the likelihood of success of a claim prior to agreeing to provide such insurance. The premium is usually is paid from damages awarded or settlements, and may be payable in a number of forms. For example, generally, a percentage of the costs incurred is agreed as payment. It is worth noting that ATE insurance does not cover solicitor’s fees.
Another form of Litigation Insurance, commonly known as, ‘Own Side’s Budget’ (OSB) insurance which covers the claimant’s own costs of litigation. With this insurance, the client’s legal fees and costs are only covered when the claim is unsuccessful therefore if the claimant succeeds in his claim however is not awarded costs by the court then the claimant will be liable for their own costs. This type of insurance may be more beneficial in conjunction with a ‘no win no fee agreement’ with the instructed solicitor for additional protection.
Furthermore, a client may purchase insurance against the potential risk of being liable for their opponent’s legal costs. Fee shifting is applicable in the event the policyholder has an unsuccessful outcome regarding their dispute and an award for costs is made against them.
There are a number of insurance brokers who specialise in litigation insurance.
- Temple Legal Protection Limited offer ATE insurance, as well as cover for the client’s own legal fees. Temple Legal Protection Limited are also authorised by the Financial Conduct Authority. They have offices located in both Guildford and Bristol. Further information is available on their website: temple-legal.co.uk. They may be contacted by telephone on 01483 577877 (Guildford office) or 01179 595495 (Bristol office). Alternatively, you may prefer to email them at email@example.com.
- Another firm which provides insurance for both civil and commercial litigation work is DAS Insurance which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. They can be contacted by phone on 03702 411345. Their website, dasinsurance.co.uk provides further information.
- Advantage Litigation Services help clients find the right insurance policy. Being based in Guildford, they can be contacted by telephone on 01252 354434 or emailed at firstname.lastname@example.org. For more information about Advantage Litigation Services, visit their website at advantagelitigationservices.co.uk.
- A highly-rated insurance broker is Clear Insurance Management Limited who provide ATE and are regulated by the Financial Conduct Authority. Further details can be found on their website at thecleargroup.com. Alternatively, they can be contacted by phone on 03300 948740 or by email at email@example.com .
- Allianz Legal Protection (part of Allianz Insurance PLC) is a specialist legal protection insurer and is authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. They may be contacted by phone on 03702 434340 or visit their website at allianz.co.uk.
Although litigation insurance is an available and useful tool for many, it may not be necessary for all. Many household and car insurers include legal expenses insurance as part of their policy, and it is advised to check all insurance policies in place prior to purchasing litigation insurance.