How litigation insurance shifts the financial risk of losing a claim — and the rules governing before-the-event and after-the-event cover.
Adverse costs can dwarf a party's own legal fees, so funding a claim is as much about insurance as it is about agreements with solicitors. This chapter begins with the nature of litigation insurance and the distinction between cover bought before a dispute arises and cover bought after, then examines BTE policies in detail — where they are found, the terms that determine their adequacy, and the policyholder's right to choose a solicitor once proceedings are issued. It moves on to ATE insurance, including its relationship with conditional fee agreements, how premiums are calculated and structured, and the LASPO changes to recoverability alongside the QOCS protection for personal injury claimants. It closes with the professional duties a solicitor owes when advising on insurance options, checking for existing cover and disclosing referral commissions.
