How Are Personal Injury Claims Funded?

If you have been injured in an accident or incident that was someone else’s fault, you may be entitled to compensation.

But one of the first questions many people ask is: “but how will I pay for legal help to pursue my claim?”

The good news is that there are several ways to fund a personal injury claim – most of which involve little or no upfront cost.

1. Conditional Fee Agreements (CFAs) – “No Win, No Fee”

A Conditional Fee Agreement is the most common way to fund a personal injury claim. It means you don’t pay any legal fees upfront. Instead, your solicitor agrees to take on your case on the condition that they only get paid if your claim is successful.

How It Works:

• If your claim succeeds, your solicitor will deduct a success fee from your compensation. The most that a solicitor can take is 25% of the damages awarded for your injuries and past financial losses, but the success fee charged can be much less than 25% if the case is not one that is particularly risky.
• If your claim fails, you won’t have to pay your solicitor’s fees—so there is no financial risk to you.

2. After the Event (ATE) Insurance

Even with a CFA, there can be other costs involved in a claim, such as medical report fees, court fees, and expert witness fees. To protect you from these, your solicitor may recommend taking out After the Event (ATE) insurance.

Key points about ATE insurance:

• The premium is only paid if your claim is successful, and this is usually deducted from your compensation.
• If your claim fails, the premium is waived, so you won’t be left with a bill.

3. Legal Expenses Insurance (LEI)

You may already have Before the Event (BTE) legal expenses insurance as part of your home, car, or travel insurance.

This type of cover can sometimes pay for legal costs in a personal injury claim and it is worth checking your existing policies or asking your solicitor to do so to see if you have cover.

4. Trade Union Support

If you are a member of a trade union, and in particular if you have had an accident at work, they may offer legal assistance for personal injury claims. This can include free legal advice and representation.

5. Private Funding

You can also choose to pay for legal services privately, but this is rare in personal injury cases due to the high costs and financial risks involved.

Conclusion

Most personal injury claims in England are funded through Conditional Fee Agreements, meaning you don’t pay anything upfront and only pay a capped fee if your claim is successful.

Contact Us

If you have been injured in an accident or incident that was someone else’s fault, and think you may be entitled to compensation, please don’t hesitate to contact Louise Plant

You can also visit our dedicated Personal injury pages here for more detailed information and support resources.