When faced with the challenges of a clinical negligence claim, many of our clients find the financial implications to be just as daunting as the legal process itself. We understand the importance of guiding you through the various funding options available.
In this article, we’ll explore the key funding avenues that may be accessible, so you can make an informed decision about the best path forward.
Before the Event Insurance: your existing safety buffer
One often overlooked funding source is Before the Event (BTE) insurance, also known as legal expenses insurance. Many of our clients are surprised to learn that they may already have coverage tucked away in their existing insurance policies. This could include home, motor, or even some employment-related insurance plans.
We always recommend to take the time to review current insurance documents. If you do have BTE insurance, it’s likely that it can be used to cover some or all of the legal costs and disbursements associated with your clinical negligence claim. The level of coverage will vary between policies, so it’s important to understand the details.
Some BTE insurers may stipulate that you use one of their approved solicitors, at least in the initial stages, but do contact us as we may still be able to act.
No Win, No Fee Agreements: sharing the risk
The most common funding method for clinical negligence claims is a Conditional Fee Agreement (CFA), also known as a No Win, No Fee agreement. Under this arrangement, your solicitor only gets paid if your claim is successful.
If your claim is successful, your solicitor will be entitled to charge a ‘success fee’, which is capped at 25% of your general damages and past losses. This fee is deducted from your final compensation award. While the exact percentage will be clearly outlined in your CFA, the actual monetary amount can be difficult to predict, as it depends on the overall legal costs incurred.
It’s important to note that a CFA only covers your solicitor’s fees. To safeguard you against the risk of having to pay any disbursements (such as expert reports or Court fees) in the event of an unsuccessful claim, we’d typically recommend taking out After-the-Event (ATE) insurance as well.
ATE insurance: protecting against unexpected costs
ATE insurance is designed to cover the disbursements and any adverse cost orders (such as having to pay your opponent’s legal fees) if your claim is unsuccessful. This ensures peace of mind, knowing that as long as you comply with the insurance terms, you won’t be left with a large bill if the outcome doesn’t go your way.
The premium for ATE insurance is usually only payable if your claim is successful, and part of the cost is often recoverable from the defendant.
Trade Union and private funding: additional options
If you’re a member of a trade union, it’s worth exploring whether they can provide any legal advice or financial assistance for your clinical negligence claim. Some unions do offer this type of support, even if the negligence occurred before you became a member.
Lastly, while private funding used to be a more common approach, it is now less prevalent. Paying for a clinical negligence case out of your own pocket can be extremely costly, and the success of the claim may not always justify the financial risk. However, if this is a viable option for you, we can provide a detailed breakdown of the likely costs involved and work with you to manage the financial implications.
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When it comes to funding a clinical negligence claim, there is no one-size-fits-all solution. The best approach will depend on your individual circumstances, the merits of your case, and your financial situation.
We are committed to guiding you through the process, ensuring you understand the available options and their implications. We’ll work closely with you to assess your eligibility for different funding sources and help you make an informed decision that aligns with your needs and priorities.
Remember, clinical negligence claims can be complex, both legally and financially. By partnering with an experienced firm of solicitors, you can focus on your recovery, secure in the knowledge that your legal and financial interests are being protected every step of the way.
How can we help?
Alex Barley is an Associate Partner in our Personal Injury team.
For further information on the above subject, please contact Alex or another member of the team on 0330 111 3131 or via our contact form.