Before the Event Insurance - BTE Insurance for Motoring Solutions

Before the Event Insurance - BTE Insurance from Guardian Legal

At first sight our Before the Event Insurance or BTE Insurance for legal firms appears almost identical to that of a standard ULR product, except we can offer access to a greater level cover than that available from competitors.

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As far as the end customer/policy holder is concerned they will experience little difference in the execution of cover or in the way their Before the Event Insurance - BTE Insurance claim is handled. Although Before the Event Insurance - BTE Insurance cover, in the first instance, is limited to own side’s costs where the claim is above the small claims court limit and falls within the jurisdiction of England & Wales. In essence claims exceeding this amount of cost are predominantly personal injury claims.

How does Before the Event Insurance or BTE Insurance work?

Panel solicitors working on the scheme will enter into a Collective Conditional Fee Agreement (CCFA) with the Insurer, enabling them to charge 12.5% uplift on the fixed fees charged for a successful RTA bases personal injury (PI) claim in England & Wales, where the claim is above the small claims court limit. If the case goes to trial the uplift increases to 100%.

As the before-the-event BTE Insurance policy only covers own side’s costs for claims above the small court limit in England & Wales, it is necessary to provide after-the-event (ATE) cover to protect the insured against the liability of their own disbursements and opponent’s costs. In effect the client receives “double cover”, £100,000 indemnity for own side’s costs and £100,000 for opponents costs and disbursements.

The premium is staged and is contingent upon a successful outcome of the claim. If the claim is unsuccessful then no ATE premium is payable. The premium only becomes payable when it is successfully recovered from the third party. The solicitor does not need to enter into a Conditional Fee Agreement (CFA) with each client as the CCFA covers this. We are very confident that the policy is robust and was structured with guidance from leading counsel on such matters.

Benefits to the policyholder

The policyholder will in fact be better protected under the policy as they will not only enjoy their standard £100,000 limit for own side’s costs, but will also benefit from an additional £100,000 limit once the ATE policy is issued. They are also comforted by the fact that all policies here are insured by an ‘A+’ rated UK insurer.

ATE Policy

The ATE policy that the solicitor will issue (via a very user friendly internet system) provides up to £100,000 limit of indemnity and is not subject to CCA regulation. The premium is only payable in the event of a successful outcome. Premiums are fully deferred and staged, depending on when the claim concludes.

Rates are as follows:-

• RTA Claims New Process £80 + IPT
• Non - Process Pre Issue : £380 + IPT
• Post Issue (fast/track) : £650 (additional to pre-issue premium)
• Post Issue (multi/track) : £1,100 + IPT (additional to pre-issue premium)

The Proposed Scheme

The solicitor is able to generate additional revenue as a result of being able to charge an uplift on the CCFA. This is 12.5% on all pre issue claims, or 100% uplift where the claim reaches trial.

The advantages to the policy holder are as follows:

• The policyholder enjoys the standard £100,000 limit for own side’s costs (BTE cover).
• The policy holder also benefits from an additional £100,000 limit once the ATE policy is issued.
• The policy holder should be comforted by the fact that all policies here are insured by an A+ rated UK insurer
• The policies are protected by the FSA Compensation scheme.
• No CCA required.
• No need for an individual CFA to be entered into by with each client as a Collective CFA (CCFA) is in place.

The advantages to the Law Firm are as follows:

• The Firm is able to generate additional revenue as a result of being able to charge an uplift on the CCFA. This is 12.5% on all pre issue claims, or 100% uplift where the claim reaches trial.
• The ATE policy is issued via user friendly internet system.
• The ATE Policy provides up to £100,000 limit of indemnity
• The ATE Policy is fully deferred until end of case
• The ATE Policy guarantees premium recovery – the policyholder isn’t responsible for any shortfall
• The ATE Policy is not subject to CCA regulation.
• The premium is only payable in the event of a successful outcome.
• Premiums are staged, depending on when the claim concludes thus making recovery easier.

Rates are very competitive as follows:-

• Pre Issue: £300
• Post Issue (fast/track): £600 (additional)
• Post Issue (multi/track): £950 (additional)

BTE Insurance as a Marketing Tool

For a minimal cost a firm with a relationship with an Insurance Broker can provide a book of BTE policies for the broker to sell to their motor insurance clients. The broker can realistically earn a substantial amount from marketing these BTE policies. In return the Law Firm will arrange to deal exclusively with the 3% to 1.5% of these policies that generate CFA based Personal Injury claims. The scheme is virtually self funding and should generate a case load far more effectively and at a lower cost than an advertisement in ‘Yellow Pages’.

Please contact us for further details.

Guardian Legal Services Limited
Pickford House
Pickford Green
Coventry
CV5 9AP

tel : 0844 414 2124
fax: 0870 479 1639
email : info@guardianlegal.co.uk
DX 13702
Balsall Common

Guardian Legal Services Limited formerly Halycon LegalServices Ltd
Guardian Legal Services Ltd is authorised and regulated by the FSA Firm Ref No 484841
Registered as a Limited Company in England and Wales Registration No. 5756959
Registered Office Trafalgar House Alcester Road South Birmingham B14 6DT