What is Legal Expenses Insurance?

Legal Expenses Insurance (LEI) protects you from the financial risks directly associated with pursuing a legal case. Without it, you could be liable to pay for expenses (called disbursements) such as expert reports, barrister fees and the legal costs of your opponents. Some other insurance products sometimes have LEI added as a ‘bolt on’ such as home or car insurance.

• After the Event Insurance (ATE Insurance) is a policy that can be purchased on your behalf after an event such as an accident, or being mis-sold something that you become aware of at a later date.

What is After the Event Insurance and a Conditional Fee Agreement?

Conditional Fee Agreements and After the Event Insurance policies work together in tandem; protecting you from receiving a bill for costs should you lose your claim. This combination provides you total protection if you lose your claim:

• The Conditional Fee Agreement means you do not have to pay your solicitor’s basic charges or success fee
• The After the Event Insurance pays your opponent’s legal fees
• The After the Event Insurance pays for all the disbursements incurred (including the cost of the ATE)

There are exceptions to the above, for example, if fraud or dishonesty is involved.

How does After the Event Insurance work?

Your solicitor will suggest and with your permission setup suitable insurance on your behalf which will involve:

• Investigating what, if any other insurance products you have already
• If insurance cover is available, they will ensure that the policy is suitable for the value, complexity and type of claim you are making
• If there is not suitable cover available your solicitor will help complete the After the Event insurance application and keeping the insurer up to date with progress/risks

You only pay for the After the Event insurance after your case is won – so the premium is paid from your compensation award.

If your case is lost, you do not pay anything for After the Event insurance – as it is effectively a ‘disbursement’ and so is covered by the policy itself (self insured).

Do I need ATE Insurance?

What are the Benefits of After the Event Insurance?

As well as the peace of mind you get from knowing that all potential costs are covered, your insurance gives you indirect benefits as well. Any ATE insurer will want to know the risks involved with your case before they issue you an ATE policy.

So by having insurance in place, the strength of your claim is reviewed carefully by the insurer and thus validated, helping to send a strong message to your opponents that your case has a good prospect of success.