The Benefits of the Policy

“Any fool can take a risk. A wise man sees the risk worth taking.” Anon

To the Client

  • Protects your client from adverse costs and own disbursements and where required, counsel’s fees.
  • Enables the client to identify with certainty the cost of litigation if it is unsuccessful and carry out a proper risk /reward assessment.
  • Empowers the claimant to contest claims with much wealthier opponents and provides access to justice.
  • The policy may be used to provide the security required to avoid or defeat an application for security for costs.

To the Practitioner

  • Raising the possibility of obtaining insurance cover to protect the client against the adverse costs of litigation (where there is a strong case) fulfills the practitioner’s obligations to their client and should be an integral process of any litigator’s own risk management.
  • Failure to do so raises the risk of a claim from the client if the litigation is ultimately unsuccessful.
  • Avoid the trap of assuming that the client is sufficiently wealthy not to bother having an ICL policy. It is, after all, their decision.
  • It is a good discipline to undertake in respect of cases that are considered to be strong. If an ICL policy cannot be obtained for a case, the client has a right to know and is entitled to re-assess his risks of the case based on the reasons for declining the risk.
  • Having the benefit of an ICL policy should enable a claim that might not have been pursued at all to proceed or to enable a claim to proceed much further than it would otherwise have done – a direct benefit to the practitioner.