When considering taking legal action, it is often the issue of potential costs that dissuades a person from moving forward with the case.
To reduce this concern of personal financial risk, most Solicitors now offer a ‘No win, no fee’ arrangement. This means that should you lose your case, the Solicitor would not charge the client for their time however, the client would still be liable for any expenses AND their opponent’s legal costs.
Legal insurance can deal with this situation by protecting clients against their own and opponent’s costs should they lose their claim.
Legal insurance is either taken ‘before the event’, attached to another policy such as a household insurance, or is taken out once after the cause of action has occurred. The latter is known as ‘After the event insurance’. The Legal insurance will ensure that a client does not have the risk of costs in the event that the case does not proceed or is lost.
Box Legal & Legal Insurance
At Box Legal we specialise in arranging Legal Insurance in the form of After the Event Insurance (known as ATE Insurance) for all types of Personal injury claims. The ATE Insurance market began to grow significantly in April 2000 following the introduction of the Access to Justice Act 1999, which ensured that the party who was successful could recover the cost of his ATE Insurance policy from the opponent.
The justification for Legal insurance in the form of After the Event insurance came from the House of Lords in Callery v Gray. They agreed that the ‘basket’ approach to insurance should apply – Premiums recovered on straight forward cases will pay for the cases that are lost.