Funding a Claim: Alternative Ways of Funding a Claim

"Before-the-Event" Insurance

Before you look into complicated ways of funding a claim, it is worth checking carefully that you do not already have insurance that might cover the costs of your case. Many people do not know that they have this type of legal expenses insurance.

It is possible to purchase insurance against legal expenses. Such cover is sometimes known as "before-the-event" insurance, because you buy the cover before - and as a protection against - anything going wrong (this is in contrast "after-the-event" insurance, which you can purchase once you know you have a claim - see our guidance on CFAs).

If you have purchased a dedicated legal expenses insurance policy, then you will not need reminding about this. However, many people do not realise that legal expenses insurance is included in the "small print" of a policy they have taken out for completely different reasons. The policies that are most likely to contain provision for legal expenses are as follows:

Household contents insurance: This is the most common example of an insurance policy that may include legal expenses cover.

Motor insurance: Some car insurance policies also include legal expenses cover. Although this is often be limited to legal claims arising from car accidents, you may find that you have insurance for other types of legal representation, possibly including clinical negligence.

Credit cards: Sometimes, credit cards come with insurance that, though its primary job is to protect you against misuse of the card, also includes some form of legal expenses cover.

Motor breakdown cover: Very occasionally, some form of general legal expenses insurance may be included in your policy with a breakdown recovery service.

We strongly recommend that you check all your insurance policies carefully: you may be surprised to learn that you are entitled to the kind of cover that would provide finance for a clinical negligence claim.

We are very happy to pursue claims funded by "before-the-event" insurance, and have acted in many such cases in the past. However, you should be aware that some insurers try to stop you choosing your solicitor - they would rather have their cases handled by the solicitors they specify - which may prevent us from acting for you.

If you are unsure as to what level of cover you have, or what restrictions may be placed on your funding, talk to us: we will be very happy to speak to your insurers on your behalf. We will also look through any policies you have taken out, if you cannot work out whether you may be entitled to help.