Legal Expense Insurance
There are two types of legal expenses insurance: before the
event ("BTE"), and after the event ("ATE").
BTE is usually an additional benefit found in a policy that
covers another risk, such as a home or building policy. The cost is
usually fairly inexpensive and the amount of cover provided is
typically £50,000 or £100,000. Cover will be subject to conditions.
A party to a dispute or potential dispute should find out if he has
BTE cover as soon as possible. Delay may be prejudicial.
ATE can cover a number of risks but the most common is the risk
of being ordered to pay an opponent's costs, or adverse costs. A
successful litigant used to be able to claim his ATE premium from
his opponent but as a result of the costs reforms this is no longer
possible. However, it should still be possible to defer payment of
the premium until the end of the case and to make payment
conditional on the success of a claim or defence.
We can advise on funding arrangements and we have access to ATE
insurers and third party funders.