What is No Win No Fee?
No Win No Fee is a term most commonly used for a Conditional Fee Agreement or CFA. It is an agreement between you and your solicitor that if you lose your personal injury case, you will not have to pay any legal fees, so therefore do not have to worry about paying any upfront fees or being left out of pocket.
Why would you fund a case under a No Win No Fee agreement?
When you have suffered a personal injury, you may already have experienced financial loss, such as loss of earnings and medical fees. The last thing you need is to pay solicitors’ fees when there is a risk that you will lose your case and be out of pocket.
Signing a No Win No Fee agreement means that you do not have to pay anything upfront and would not have to pay anything if you lose. This means you can seek justice without being left out of pocket, as there is no financial risk.
Who pays my solicitors’ fees if I win my case?
If you win your case, your solicitors will seek their fees from the party at fault for your accident. Solicitors also charge a fee known as a ‘success fee’ and this is deducted from your compensation. Typically, this is up to 25% of your compensation award, but will depend on your circumstances and in certain cases you may be exempt from paying this fee. There will be no hidden costs – once your solicitors understand your circumstances, they will explain the fees to you in full.
What is an After the Event insurance policy?
Although a No Win No Fee agreement protects you from having to pay your solicitors’ fees, there are other fees involved in making a personal injury claim, such as court fees and medical expert fees. These fees are known as ‘disbursements’.
Your solicitor will therefore take out an insurance policy known as an After the Event, or ATE, insurance policy, which protects you from having to pay disbursements if you were to lose your case. It works in a similar way to a No Win No Fee agreement as if you lose your case, you will not have to pay the insurance premium. If you win your case, your solicitors will seek payment of all disbursements from the party at fault. Therefore, there is no financial risk to you.
What should I do next?
If you have suffered a personal injury as a result of an accident, and someone else was either fully or partly to blame, you may have the right to seek compensation, free from financial risk with a No Win No Fee agreement. Contact our expert solicitors for advice on making a no win no fee claim.
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