After the Event Insurance: What is it?

Reading time: 3 mins

Carrie Tennick, September 23, 2021

As part of a personal injury claim, you might need to take out an after the event insurance policy. This is a typical part of the claims process.

If you’ve never made a claim before, you might wonder what it is and what it covers.

We’ve put together this guide to help with any questions you may have around after the event insurance.

What is after the event insurance?

After the event insurance is exactly what it sounds like. It’s an insurance policy that you take out after something has happened.

This is generally needed in No Win No Fee personal injury claims, but it could also be recommended in other situations, such as during the conveyancing process.

It covers various costs associated with a claim. This includes the other side’s legal costs, medical reports and sometimes a barrister’s fees. If your claim was unsuccessful and you hadn’t taken out after the event insurance, you would have to pay these costs yourself.

These expenses are called disbursements and are typically paid for by your solicitor. Your solicitor then recovers these costs from the insurance policy.

When do I need to take out after the event insurance?

During your first conversation with First4Lawyers, we will make sure you know that you may have to purchase an after the event insurance policy.

Your solicitor will then explain what the policy is and when it should be taken out. If you have any questions about the policy, your solicitor will be happy to answer them.

Because the insurance policy pays for the disbursements, your solicitor will usually take it out at the start of a claim.

If your No Win No Fee claim is successful, you won’t have to pay for the policy until the claim is concluded. The cost of the policy will be taken from your final compensation amount. This means you won’t actually have to pay anything for the policy out of your own pocket.

How much does after the event insurance cost?

There is no set amount for an after the event insurance policy. The cost of a policy will usually depend on how likely your claim is to be successful.

If you haven’t taken out a policy early in the claims process, it could become more expensive to do so later on. In general, the later a policy is purchased, the more expensive it is. If legal expenses have already been paid for, the cost of the policy could run higher.

But you won’t have to pay for your insurance policy upfront. Your solicitor will ensure the policy is paid for, which means you don’t have to think about it.

Who will organise the insurance policy?

Organising an after the event insurance policy is not something that you need to worry about. Your solicitor will handle this side of the claims process for you.

Your solicitor will make sure you know exactly what costs you’ll face during a claim – but remember that if your claim isn’t successful, you won’t pay anything. That means you don’t have to pay for the insurance policy if your claim is unsuccessful.

A No Win No Fee claim reduces the financial risk of taking legal action. You won’t have to pay for anything if your claim is unsuccessful – not even an insurance policy.

If you want to find out more about making a claim and what an after the event insurance policy covers, just get in touch. Give us a call, request a call back or start your claim online and we’ll get back to you.

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