After-the-event insurance is a special type of legal expenses insurance. It is called ‘after-the-event’ insurance because it is purchased after the event that has led to legal action taking place; ordinary insurance is purchased in anticipation of an event, not after it has occurred. After-the-event insurance covers the policy holder for the other side’s legal costs. When a claim is unsuccessful, the unsuccessful party can be ordered by the court to pay all or part of the successful side’s costs. Many people would be unable to afford these costs and the possibility of paying them may put them off litigation. Therefore after-the-event insurance provides them with a way to pursue their claim.

After-the-event insurance is usually purchased by claimants who have entered into a no-win, no-fee agreement with a solicitor. No-win, no-fee solicitors agree to receive their fees only if the claim is successful. They will recommend to the claimant to purchase after-the-event insurance in case the claim is unsuccessful. If the claimant cannot afford the insurance premium, the no-win, no-fee solicitor may offer to take it out on their behalf, under the condition that the claimant repays the premium if their claim is successful.

No-win, no-fee solicitors are often used for personal injury compensation claims, clinical negligence claims, employment law claims, defamation claims, and other civil litigation claims. After-the-event insurance is often used in these claims as well. For further advice on after-the-event insurance, a claimant can speak to a no-win, no-fee lawyer. A no-win, no-fee lawyer can assess their claim and advise them on their options.

Last Updated on 29/08/2011