A policy arranged by QLCC can indemnify £5,000,000 or more of any or all of the following cost risks in litigation or arbitration for either a claimant or defendant:
100% of opponent’s costs (typically arising following an order made by the court to reimburse the costs of a successful opponent in litigation – known as “adverse costs”).
100% of disbursements made to advisers and experts other than solicitors (e.g. barristers and expert witnesses).
75% of expenses paid to own-side lawyers (i.e. a deductible of 25% is applied).
The premium is calculated as a % of the total limit of indemnity pre deductibles and is paid in stages to reflect the phases of litigation. If settlement is reached before a premium payment is due no further premiums relating to later stages are payable. The cover is typically written and the premium set in the early phase at the commencement of the litigation. The cover may not be available if sought at later stages (or the premium % will be significantly higher).
The worked example below (excluding Insurance Premium Tax) uses illustrative numbers to demonstrate how the policy works. Actual quotations will depend on the circumstances of each proposal.
Own solicitor’s costs
Estimated legal costs at risk pre insurance if lost at trial (max limit of indemnity)
% reimbursement post deductibles
Potential legal costs at risk post insurance if lost at trial
Insurance premium paid by time of trial
Net potential costs at risk post insurance and premium
Risk reduction with insurance if lost at trial
Staged premium payment facilitates early settlement as no further premiums are payable
Phase 1 Premium (% of total limit indemnity)
Phase 2 Premium (% of total limit indemnity)
Phase 3 Premium (% of total limit indemnity)
Click on the case studies to read more detail of how the Quantum Legal Costs Cover policy works in practice:
“QLCC” and “Quantum Legal Costs Cover” are trading names of Harbour Underwriting Limited.
Harbour Underwriting Limited is an appointed representative of Bennett Gould & Partners (Dorset) Limited which is authorised and regulated by the Financial Conduct Authority.
Harbour Underwriting Limited. Registered Office: 4th Floor, 8 Waterloo Place, London, SW1Y 4BE.
Registered in England & Wales No. 10384185