AFTER THE EVENT LEGAL EXPENSE INSURANCE

Case I

The following is an actual example of the way an indication of terms and premium for After The Event Legal Expense Insurance was presented to the solicitors handling the case. This was a difficult matter wherein the claimant client was seeking an account, damages, repayment of debts allegedly due and a counter-claim was also anticipated alleging the claimant had performed services negligently. Below is a copy of the actual indication of premium and terms (with the names removed) showing how the “alerts” are handled in this case :-

Our indication of terms for the provision of ATE insurance are as follows :-

1. For a limit of indemnity of £50,000 in respect of opponent's costs and own disbursements our indication of premium is £11,500 plus IPT (£12,075.00) and if cover for the ATE premium itself were required the premium would rise to £12,980.00 plus IPT (£13,629.00).
2. 2. This matter may be suitable for the use of a "stepped premium". If initial cover of, say £20,000 plus the After The Event Legal Expense Insurance premium itself (total £25,542) was provided the indication for the initial premium would be £5,192.00 plus IPT (£5,541.60). The insurance cover could then be raised as required subject to our view that the merits of the case had not decreased. This would allow the opponents to be put on notice that an ATE premium had been incurred as an additional liability that they would be being asked to pay on successful conclusion of the case and that if the matter does not settle further additional liability costs will then be incurred. This approach gives the opponents the opportunity to settle the case before further additional liability costs are incurred and should a dispute arise over costs the information with regard to this can be placed before the Judge.
3. The client/insured would be deemed to have been successful in the proceedings if he :-
   • obtains any order for an account against the defendant or
   • he obtains any award of damages against the defendant and
   • he obtains an order for costs in his favour irrespective that such orders for damages and/or costs in his favour may be reduced and/or extinguished due to the defendant being successful or partially successful in any counter-claim against the client/insured that may become part of the proceedings
   .
4. Should the matter be compromised, agreed or otherwise settled prior to trial no claim shall fall to be paid by the ATE insurer without our consent.
5. All Part 36 Offers or the like made or received by or on behalf of any party to the case would require written confirmation from us to confirm if the ATE insurance would continue subsequent to the receipt or making of such offers.
6. The ATE insurance provides no cover at all in relation to the risk of an inability to enforce any award of costs and/or damages against any party to the case for whatever reason.
7. These indications of premium and terms may not be released to any opponent of the potential client/insured, whether by way of a Funding Notice or otherwise, until the matter has been agreed and cover incepted with the full premium applicable having been paid.

If these indications are of interest please call me to discuss this matter as it may be that other options for the provision of ATE insurance could be agreed and with regard to the reviews that would be required upon receipt of a Defence, the possible requirement for expert evidence and the need that may arise for substantially increased ATE insurance cover.

Case II

This relates to a professional negligence claim that had taken a long time for the solicitors and Leading Counsel involved to handle and had a vast amount of information that we had to review. Our indication of premium and terms for After The Event Legal Expenses Insurance was as follows :-

We are prepared to indicate terms for this case as follows :-

1. For a limit of indemnity of £40,000 in respect of opponent's costs and own disbursements only our indication of premium is £10,400 plus IPT (£10,920.00) to include cover for the ATE premium itself.
2. This matter may be suitable for the use of a "stepped premium". If initial cover of say £10,000 plus the ATE premium itself was provided the indication for the initial premium would be £2,600.00 plus IPT (£2,730.00). The insurance cover could then be raised as required subject to our view that the merits of the case had not decreased. This would allow the opponents to be put on notice that an ATE premium had been incurred as an additional liability that they would be being asked to pay on successful conclusion of the case and that if the matter does not settle further additional liability costs will then be incurred. This approach gives the opponents the opportunity to settle the case before further additional liability costs are incurred and should a dispute arise over costs the information with regard to this can be placed before the Judge.
3. All Part 36 Offers or the like made or received by or on behalf of any party to the case would require written confirmation from us to confirm if the ATE insurance would continue subsequent to the receipt or making of such offers.
4. These indications of premium and terms may not be released to any opponent of the potential client/insured, whether by way of a Funding Notice or otherwise, until the matter has been agreed and cover incepted with the full premium applicable having been paid.
5. These indication of terms shall remain open for a period of 21 days from the date of this letter and all other terms of the policy wording shall remain in force.

If this indication of terms is of interest please call me to discuss the matter to see what we can provide for your case.