Funding a Claim: CFAs ("No Win No Fee")

• Introduction
• Public Funding ("Legal Aid")
• CFAs ("No Win No Fee")
  • Expenses a CFA Will NOT cover
  • Insurance and Loan Agreements
  • At the End of your Case
• Other Alternatives

Talk to Us Now

• 0800 0730140
• Request a call back
• Name:

  Phone number:

  Email:

  Summary of enquiry:
• Email Us Now

Print this page Forward to a friend, colleague or adviser

Insurance and Loan Agreements

Insurance

We would strongly advise that, when you enter into a CFA, you also take out an insurance policy (often known as "after-the-event" insurance). With one of these policies, if your claim is unsuccessful, the insurance will pay the Defendant's fees. Depending on the policy, you may also be reimbursed for any disbursements you have had to meet along the way. Because we agreed to waive our fees if you are not successful, you would not need to insure against having to pay our fees.

As with all insurance policies, after-the-event legal cover comes at the price of a premium. This is usually a single, one-off payment, which is calculated with reference to the amount of cover needed. Sometime, payments are "staged", to reflect the progress of the case, and the amount of cover that is needed at each stage.  Unfortunately, the insurance premiums for policies backing CFAs are very expensive, and can even run into several thousands of pounds. However, you may well be able to finance this expense through a loan agreement (see below).

If you are entering into an insurance policy, the insurers will probably expect substantial evidence of the strength of your claim, in order to assess the risk to them. This may well include a medical expert's report, which may mean that you have to pay for an initial report before you can obtain an after-the-event policy. This will, of course, depend on the particular circumstances surrounding your claim. We can advise you further about this when we discuss your case with you in more detail.

Loan Agreements

If you cannot afford to pay the insurance premium and disbursements as the claim progresses, it may be possible for you to enter into a loan arrangement. Some loan arrangements can be made in cooperation with the insurance companies who provide after-the-event policies, but it is worth "shopping around": you may well be able to obtain a better rate of interest privately. Insurance premiums and accumulated disbursements can mount up into very significant expenses, so it is worth obtaining the best deal possible.