Litigation expenses insurance – Before or after?

Posted by on 26 July, 2010 No comments as yet

Insurance for legal expenses has evolved along with CFA’s. Client’s may prefer the new “hybrid” offerings that allow them to pay later. Timing is of the essence and there are ways to attract the most favourable rates.

Insurance as an investment

Appropriate policies are an investment if set up correctly. Some insurance companies will accept payment of the premium after the case is concluded and they have a variety of ways to ensure that it is paid. Typically, client’s that have already assessed they have a good chance of winning the case before approaching the insurance market receive the best terms.

It’s important that the terms and conditions of the policy dovetail with other agreements. Only then will the policy pay out, return on investment is guaranteed when everything is in order. As long as the policyholder is aware of the terms and conditions, so they know exactly where they stand.

Interpretation is everything

Insurers will not issue cover without undertaking a thorough review of the circumstances. Provide them with a good case backed up by counsel’s opinion and they will respond accordingly. Investing time at this stage will ensure terms and conditions are favourable.

No two policy wordings are the same so interpret the terms in the worst possible light to exclude shades of grey. If it sounds like it isn’t covered, it probably isn’t. The brochure will paint a picture, the policy wording is the High Definition document.

As an independent broker I am (almost) professionally obliged to say you should refer to an independent broker. Be that anyone you choose, they will be able to interpret the policy conditions and the manner in which different insurance companies handle settlements. Each quotation should be judged on it’s merits.

Timing is of the essence

The earlier you apply for a quotation the better. If clients are relying on After the Event Insurance it is more expensive and restrictive than annual arrangements. As soon as you hear about a claim encourage the participant to at least consider cover. They may already have cover attached to another policy yet it will only apply if a notification is made early.

Delayed applications could mean increased percentages of awards being deducted from your costs or the clients award – if there is one. An insurance company will ensure it receives it’s premium. Where it comes from is up to the applicants.

Wrap up: Insurance is a prudent investment for strong cases. Terms and conditions from a range of providers can be assessed quickly and easily by an experienced eye. A strong case presented early will attract the most favourable settlement terms.

Top Tip: Don’t search the market yourself if your time is worth money.

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Categories : After The Event,Business Insurance,Company Insurance,Legal expenses insurance,Liability Insurance,Litigation expenses insurance,Solicitors insurance Tags : , , , , , ,

Solicitor’s professional indemnity concerns

Posted by on 6 July, 2010 No comments as yet

Some solicitors are still punch drunk from last year.

With fewer insurance companies offering cover this year solicitors need more help than ever. Some are rolling with the punches, others have already given up. Here are the options including the good bad and ugly.

Last year the renewal season lead to the dreaded ARP charging solicitors 35% of turnover just to stay in business. Since then, Quinn has proved unreliable and their biggest supporters in the broking community are scrambling round the market for a viable alternative.  The Law Society Gazette reports that mergers are on the up and “the biggest driver over the next few months will be the professional indemnity insurance Read the rest of this entry

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Categories : Solicitors insurance Tags : , , , , ,

You don’t want insurance companies to pay fraudsters – especially if they’re using your premium

Posted by on 15 February, 2010 No comments as yet

Have you contributed to Madoff’s legal defence costs?


Not all insurance disputes should be won by the insured, especially if they are fraudulent.

Usually I’m furious when I hear that an insurance claim has been declined. This time I was pleased; Lloyd’s of London successfully defended themselves in a US court when Madoff tried to appeal that Lloyd’s were wrong to cut off the funding of his defence costs.

Lloyd’s had already parted with $4million whilst the legal eagles prepared their cases. They pulled the plug after one of his cohorts pleaded Read the rest of this entry

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Categories : Accountants Insurance,All Risks Insurance,Business Insurance,Company Insurance,General Requirements Tags : , , , , , , , , , , , , , , , , ,

Professional Indemnity Insurance – Discover how to avoid losses

Posted by on 25 January, 2010 No comments as yet

Professional advisers are not always protected by their insurance


Want to know why some indemnity insurance claims are declined? I have two examples of claims being declined, one more extreme than the other, yet both prove small errors can prove costly. And I’m going to tell you why they were declined and how to avoid it happening.

The first is the most recent, only a few months ago an insurance company refused to cover a claim for a company that was being sued for £47,000. The claim related to an incident that occurred in July 2005 when they had translated a document (allegedly incorrectly) yet it would have been covered if the insurance company had been made aware of it earlier. Read the rest of this entry

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Categories : Accountants Insurance,Business Insurance,Company Insurance,Customer Service,General Requirements Tags : , , , , , , , , , , , , , , ,

Discover how your business network can help your clients

Posted by on 6 January, 2010 No comments as yet

Your network can help you keep clients as well as find new ones

Here’s a simple way to add value to your product or service.

From time to time your clients will reach the limit of your product or service. With a good sales and marketing process you will have already set the parameters of where those lines are drawn. However, you can add value if you have worked out who can help your clients where you can’t. Read on for examples. Read the rest of this entry

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Categories : Business Insurance,Company Insurance,Customer Service Tags : , , , , , , , , , , , ,

Business Insurance has a hidden weakness – does your policy protect you properly?

Posted by on 4 November, 2009 No comments as yet

Insurance claim departments are taking a hard nosed approach – make sure you’re covered


I recently heard about three businesses who have been robbed of £250,000 assets and their company insurance is not paying out. Today, I heard about another case of a business getting caught out and insurers used terrible judgement to decline the insurance claim.  I am trying to use the information superhighway to show you how to ensure this doesn’t happen to you or people you know that run businesses.

The scene of the crime

Criminals have been climbing into manholes and cutting telephone lines at targeted premises. This triggers the alarm and Police and a member of staff attend the premises. There’s absolutely no evidence of a break-in so the Police and staff withdraw. After everyone has left the premises are then broken into yet the alarm doesn’t sound because the lines have already been Read the rest of this entry

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Categories : All Risks Insurance,Business Insurance,Company Insurance,Contractors Insurance,Uncategorized Tags : , , , , , , , , , , , ,