(Estimated reading time: 3 minutes, 24 seconds)
By David Chase, Deputy Underwriting Manager
We believe that finding the right partner at the right time enables you and your client to share risk effectively. But how do you find the right litigation insurance provider? We suggest you take your time to build a relationship with your litigation insurance provider, before you first insure a case with them, so that you both have a better understanding of how to help each other. We think that when you are looking for the right litigation insurance and disbursement funding partner, there are seven important things to keep in mind.
Firstly, look at the bigger picture. Can the insurer and funder give you material to increase you and your client’s awareness and understanding of the available products? Do they have a client guide or worked examples for pricing? Do they have useful FAQs that answer your client’s questions? Seek out evidence of service delivery such as case studies and testimonials.
Secondly, litigation insurance and disbursement funding enables you to protect your client from ruin. Not many of us could afford to leave our homes or our businesses uninsured. Can your clients afford to leave their cases uninsured? You need to look for an insurer who covers both the risk of having to pay the opponent’s costs, and the risk of not recovering your client’s own disbursements in the event of a loss. What is their record for paying claims, is it very high? You need to know that, if the worst happens, your client need not worry.
Thirdly, ask for a tailored service. You want underwriters who understand the cases you send them and you want solutions that work for all of those cases. If there is a wrinkle in the quote, challenge your provider to reconsider and offer a better, practical solution. It may save time to identify with your clients in advance what their deal-breakers are, and communicate them to the underwriters. Then you can work with the insurer to get the right policy for your client’s case.
Fourthly, is the case in the right place? Are you able to assess the chances of success and are they 60% or better? Have you investigated your case and perhaps concluded pre-action correspondence? Are you close to issue, but up against it in terms of meeting the limitation date? Start your search for insurance and funding as early as possible.
Fifthly, meet the provider. Ask for a one-hour training / roundtable session from your provider. Use the opportunity to have all your questions answered at once by experts in their field. Have some live case examples ready and expect to work through some indicative pricing.
Sixthly, how can you bridge the funding gap? Look for an FCA regulated provider with disbursement funding available through a seamless online system at a market leading interest rate. We believe that disbursement funding can get cases going quicker. A disbursement funding interest calculator could demonstrate to your clients quickly how much it might cost based on the amount of the loan and the length of the loan.
Lastly, we believe solid and steady wins the race. It is worthwhile checking who provides the insurance capacity for the litigation – who are the Insurer named on the insurance policy, are they UK based? Further, does your provider have “A-rated” capacity? Is the provider FCA regulated for both their litigation insurance and disbursement funding? Also do they have a proven reputation over considerable time – do they show that they listen to their client’s needs and also pay a claim when the case loses?
The benefits of dealing with Temple include:
- UK based “A-rated” insurance capacity with our partner RSA;
- Fully FCA regulated for both ATE insurance and disbursement funding;
- Ability to speak directly with expert decision makers;
- Fully deferred and contingent ATE premiums; and our comprehensive cover includes interim costs and mediator’s fees.
- Eligibility to apply for disbursement funding for every case insured by Temple, all dealt with in-house, and a market leading interest rate of 10%.
- Record of paying 97% of all claims submitted.
You may also want to read about
- ATE Insurance, The SRA Standards and Regulations 2019 and the importance of judgment – link to https://www.temple-legal.co.uk/news/compliant-or-complaint/
- The due diligence needed when choosing ATE insurance and funding providers – link to https://www.temple-legal.co.uk/news/due-diligence-needed-choosing-ate-insurance-funding-providers/
Consult with us now:
Call David Chase on 01483 514 424 or email david.chase@temple-legal.co.uk
Book a consultation/training session at your offices with our experts
