Covering the costs of making a personal injury claim
If you think you may have a personal injury claim, you may wonder how you will cover the costs of making a compensation claim, such as you solicitors’ fees and other legal costs.
A popular way to fund a compensation is via a no win, no fee claim. This is an arrangement with your solicitor which means that if you lose your case, your solicitor does not get paid.
How do no win no fee claims work?
Without a no win, no fee claim, the loser normally pays the legal costs of the winner in addition to their own costs, subject to certain rules known as ‘qualified costs shifting’.
With no win, no fee claim cases, your solicitor would agree not to charge a fee unless the case is successful.
The risks with no win, no fee claims can be limited to paying the other side’s costs if you lose, plus any ‘disbursements’ (such as the cost of expert witness reports) and Court costs. You can, however, buy insurance to cover these costs and we generally require that you do so.
Running a legal action on a no win, no fee basis with costs insurance means that as your solicitor, we are taking the largest financial risk. In no win, no fee claims, if you lose we don’t get paid, but the insurance will cover any exposure to the other side’s costs and your own disbursements.
Due to this risk, we will charge a ‘success fee’ which varies depending on how risky the case is. You will also be expected to pay the success fee from your compensation.
Legal insurance
The two forms of insurance you can buy to cover your legal costs are known as:
- After The Event (ATE) is bought when you are in a dispute and need to cover your costs and the other side’s legal bill should you lose.
- Before The Event (BTE) is commonly sold with house or motor insurance policies to cover your costs in the event of a legal dispute in the future.
One of the first steps we will take in advising you on funding is to check whether you have BTE insurance cover already in place.
How Nelsons can help with your no win, no fee claim
Our personal injury solicitors have extensive experience of different types of accidents and injuries and can provide advice and support throughout your compensation claim.
The team is also recommended by the independently-researched Legal 500 and Chambers & Partners as one of the top teams of specialists in the country.
We are also members of the Law Society Personal Injury Panel – a specialist qualification held by experienced personal injury solicitors.