The legal costs that come with bringing a claim can be high in many types of cases. These costs can deter businesses and individuals from pursuing a claim and standing up for their legal rights. A potential litigant must consider not only their own legal costs, but also the potential exposure to the other side’s costs, as courts order the party that loses in court pays the other party’s legal costs.

One solution to this issue is to obtain legal expenses insurance to protect litigants from the costs of litigation. Legal expenses insurance (LEI) cover can assist parties to cover the costs that have been incurred throughout their case, as well as helping to protect them from adverse costs.

Legal expenses insurance providers can offer businesses and individuals the opportunity to pursue legal action whilst minimising the stress associated with it. LEI is designed to give litigants access to expert legal advice that they require

How can legal expenses insurance providers help litigants?

Legal expenses insurance assists policyholders in obtaining legal assistance. LEI can help with any unexpected legal costs that arise as a result of legal disputes or when pursuing a case themselves. LEI can offer protection against the financial exposure of having to pay an opponent’s legal fees in the event that they are unsuccessful in legal proceedings.

Legal expenses insurance can come in the form of before the event (BTE) insurance or after the event (ATE) insurance.

BTE insurance is taken out prior to the event that gives rise to litigation and is often included as an optional extra in certain types of insurance, such as home or car insurance.

If a party does not have an insurance policy in place before the event, they may still be able to obtain legal expenses cover using an after the event insurance (ATE) policy.

There is typically an upfront cost for legal expenses insurance. In certain cases, the payment of this insurance can be deferred until the conclusion of the case. In these situations, policyholders may only have to pay for this premium from the awards received if the case is successful.

Who can legal expenses insurance providers assist?

Whilst LEI is typically used for claimants, any party to litigation has the potential obtain it. It can be purchased at any time before or after proceedings have been issued. However, purchasing LEI after proceedings have begun can result in higher premiums and can make it harder to find cover.

LEI allows clients of limited means who may not have been able to pay for any order for costs before the opportunity to do so. LEI can also be useful in satisfying a Security for Costs order in a cost effective fashion. Annecto Legal prides itself on offering a professional, experienced service at market leading rates to clients looking to obtain legal expenses insurance.

We assist businesses in obtaining specialist legal expenses insurance to ensure that they have the capability to take on a more resourced opponent on level terms. We have worked with a variety of individuals to help them find the right litigation funding or insurance including individuals, insurance brokers, solicitors, insolvency practitioners and accountants.

What are the benefits of using legal expenses insurance providers?

Legal expenses insurance providers offer a number of benefits to parties looking to pursue legal action. These include the following: 

• Claims can be pursued to their fullest extent as businesses do have to be concerned about the repercussions and risk due to risk mitigation 

• LEI can provide legal protection from interim costs orders. Also, depending on the policy, legal expenses insurance can protect against adverse costs in interim hearings 

• LEI takes away the risk of being made to pay the opponent’s legal costs if the dispute is not successful 

• LEI policies provide the incentive for an opponent to settle as they will be aware that the insurer has conducted an analysis of the merits of the case and its prospects of success 

Determining whether to buy legal expenses insurance for your case is important. Therefore, it is essential to ensure that you have an experienced legal expenses insurance provider on your side. At Annecto Legal, we can assist clients in understanding LEI, as well as helping them to secure the best deal.

How can Annecto Legal assist?

Annecto Legal helps clients realise the true value of their litigation claims. The application, quotation and premium structures of legal expenses insurance can be complex. Therefore, we advise that you get in touch with our team today so that we can give you the guidance that you need.

We offer our LEI services to a range of clients. Contact one of our advisors to find out more about legal expenses insurance and which litigation cover is the correct choice for your legal case.

Call us today 0800 612 6587, or we can be contacted using the form below.