Policy Conditions

Policy Conditions: Reasonable Prospects of Success

Most ATE policies require a claim to have reasonable prospects of success at every stage. This normally means a better than 50/50 chance of winning although some policies require prospects of success to exceed 60% or even 70%. This gives rise to problems:

• Prospects of success vary throughout a claim.
• Any assessment is subjective - there will be differing views.
• Lots of additional liaison work is needed throughout a case.
• Insurers frequently assess prospects only once the case is lost and then refuse to pay claims on the grounds that the case had insufficient prospects.
• If a claim becomes problematic, then cover may be cancelled, making it impossible to work towards a settlement.

Box Legal’s ClaimSafe ATE insurance policy does not require any minimum prospects of success, so these disadvantages are avoided.

Policy Condition: Reporting and Permissions

Some policies give the solicitor “delegated authority” to run their claims as they see fit, but many policies require solicitors to:

• Provide regular updates
• Obtain Counsel’s opinion for the insurer
• Ask permission to proceed at key stages
• Seek authority to incur disbursements
• Ask the insurer to let them make or reject Part 36 offers
• Co-operate in regular on-site file audits

The ClaimSafe ATE insurance policy does not contain any of these requirements.