One of the advantages of our after the event policy is that it can operate in support of a hybrid CFA which helps maintain solicitors’ cash-flow.
Other advantages, particularly where clients are increasingly aware of CFAs, include:
- Increased profitability through CFA success uplifts
- Client companies and/or individuals are able to mitigate the costs of litigation, hopefully generating more business
- An insurance policy is usually accepted by Courts as costs security
- Adverse costs and reasonable disbursements are covered against loss
In terms of practicalities, to underwrite a case we need our usual form completed and copies of the relevant case papers. If you have not entered a CFA we will, if the case is acceptable, provide an indication of terms subject to a CFA being in place before inception of the policy.
We usually insure on one of the following bases:
- All fees incurred under a CFA (the majority of our cases)
- Work undertaken by lawyers is split between a CFA and fee paying, e.g. the administration of a group action is done on a fee paying basis whilst individual client work is conducted under a CFA
- A “fighting fund” is paid periodically by the client
- A case is run on a fee paying basis to a certain point and then moved to a CFA basis, however, insurance can be back dated to cover pre CFA expenses
- A discounted rate is offered to a client with the discounted amount attaching to a CFA
