“After the Event” Insurance
In a type of insurance known as “After the Event” Insurance, when someone thinks that he or she may be going to court with a case, an insurance company can write an after the event insurance policy which will cover the client’s legal fees. If the client wins the case, his or her opponent will pay the fees in some cases, including the premium for the after the event insurance, but if the client loses, the insurance will cover the expenses that he or she would otherwise have to bear.
Typically, the premium for after the event insurance is due after the conclusion of the legal case. For clients who win, the cost of the premium is passed on to the loser as part of the legal fees in cases where that is applicable. If a client loses, the insurance policy may include a clause which insures the premium, so the client will not have to pay it. This arrangement is known as the “no win no fee” basis in this type of insurance.