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The majority of our personal injury and medical negligence claims are funded by a Conditional Fee Agreement (CFA) commonly called a No Win No Fee agreement.
A No Win No Fee agreement is a well-established means of funding a personal injury or medical negligence claim which minimises any financial risk the claimant may face should they lose their case. That’s unlikely to happen, since we would not have recommended you pursue a compensation claim on a No Win No Fee basis unless we were convinced it stood a good chance of success.
Alongside this Conditional Fee Agreement (CFA) it is advisable to take out a special insurance policy called ‘After the Event’ insurance (ATE). In the event that your claim is unsuccessful, this insurance would provide you with an indemnity for any legal expenses that you have incurred and for any of your opponent’s legal costs you are required to pay. The cost of this insurance is deferred until the end of the claim. No up-front-payment of a premium is required.
Compliance with the terms of the Conditional Fee Agreement and the ATE policy is essential. If you provide false or misleading information the protection provided by the CFA and ATE may be lost, meaning you would have to pay all your own and possibly your opponent’s costs too.
Although there are technical and procedural differences in the way No Win No Fee works in personal injury and medical negligence cases, the common aim is to remove the worry and minimise any financial risk you face should you lose your case. You will only have to make a contribution towards your legal costs from any compensation awarded if you win your claim and, even then only at the end of the process.