After the Event Insurance: A Legal Expenses Insurance Policy

Rather than let costly legal expenses derail your finances, you can purchase after the event insurance. It pays for all costs related to defending yourself in court, or costs for commencing a lawsuit. The “event” is the lawsuit itself, or an event that is likely to result in a court battle, such as a car accident. You pay the insurance premium after the lawsuit is initiated or at the close of the case, which in turn pays for your legal costs.

Types of Legal Cases

There are no areas of law that is “off limits” to after the event insurance coverage, but it’s typically used for civil law cases. The following are some types of legal cases that this type of insurance could be used for:

  • Personal injury
  • Commercial litigation
  • Landlord/tenant disputes
  • Negligence cases
  • Malpractice lawsuits
  • Intellectual property infringement

Each insurance company specializes in products geared to certain areas of law. Don’t assume you’re your case will be covered because a company sells this type of insurance. Ask them specifics on what types of legal cases it covers, and which ones  it does not.

Conditional Fee Agreements

You may be happy to have a solicitor take on your case based on a conditional fee agreement. It’s also known as a “no win, no fee” arrangement, because the condition is winning the case before the solicitor can get paid. The one drawback of the arrangement is that you still have to pay for your opponent’s costs. That can be a challenge for you financially, and you can avoid it by buying after the event insurance. Instead of paying for the other side’s costs, the insurance company will. The good news is that you can buy it after you commence a lawsuit, and not before.

Rights of Insurance Companies

The insurance company will want to protect its interests and will help you succeed so that they don’t have to pay any or the full amount of your claim. You can expect some insurance companies who sell after the event insurance to:

  • Try to stop you from filing a lawsuit
  • Settle the case for you
  • Provide its own experts

They justify this level of control in your case, because they may end up paying for your legal expenses.

Benefits of After the Event Insurance

There are several benefits to buying insurance, rather than paying for expenses out of pocket. Some of these benefits include:

  • Paying less for premiums then the total legal expenses for a case that may be ongoing for a year or more
  • You can hold on to your savings for other emergencies
  • In some countries, you can recover the premiums from an opponent if you win
  • You can receive discounts for early case settlement
  • Premiums don’t have to be paid until the conclusion of the case

The insurance company often waits to see whether you win or lose, because the opponent may have to pay for your costs. After the event insurance can be a vital part of financial planning, because you may not have to pay a premium. You can also buy it when you actually need it, as opposed to buying insurance before there’s a legal action.

blog comments powered by Disqus