Insurance solution
Own-Side Costs Insurance
Cover for the claimant's own legal spend in defined unsuccessful outcomes.
- A judgment or award won
- A judgment against you
- Funder capital deployed
- Law firm fees and WIP
- Security for costs
- The opponent's costs
- Disbursements
- Own legal costsThis cover
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
What is Own-Side Costs Insurance?
Own-Side Costs Insurance is a form of litigation risk transfer that may be arranged around your own legal costs. Cover for the claimant's own legal spend in defined unsuccessful outcomes. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
Own-Side Costs Insurance
Not a policy. A specimen to show how this cover is structured. Cover exists only when a policy is issued, on its own wording.
- Terms
- Terms, where available, are set case by case through underwriting.
- Protects
- Your own legal costs, depending on policy terms.
- Terms
- Limit, premium and conditions are set by underwriting on the specific risk.
Clause 1
The insured
Who it is for
Claimants who are paying their own lawyers and want protection if the case fails, and law firms whose fees would otherwise be at risk.
Clause 2
Insuring clause
What risks can be protected
The insured's own legal spend in defined losing outcomes: solicitors' fees, counsel's fees and experts, up to the limit.
Some policies cover only disbursements; others cover a proportion of fees.
Clause 3
Operation of cover
How it works
Own-costs cover responds only to the outcomes the wording defines — usually losing at trial or discontinuing on the insurer's advice — and only to costs properly incurred within the budget.
It sits naturally alongside adverse costs cover in a single policy.
Clause 4
Underwriting
Underwriting factors
The core assessment is the same as for After-the-Event Insurance: merits, quantum, a proportionate budget, recoverability and the legal team.
The points that weigh most for this cover are set out under "What risks can be protected" and "How it works" above.
Clause 5
Proposal documents
Information required
The standard presentation pack described on the After-the-Event Insurance page, plus the documents specific to this cover noted above.
Clause 6
Limit, premium and staging
Potential structure
Often bundled with adverse costs cover under one limit or separate sub-limits.
Fees may be covered only where the law firm has agreed a discounted or conditional arrangement, so that the risk is shared.
Clause 7
Alternatives
Alternatives
- (a)A conditional or damages-based fee arrangement with the law firm;
- (b)Third-party funding of fees; and
- (c)WIP insurance taken by the firm itself.
Clause 8
Territory
Jurisdiction notes
Forum rules apply as described on the After-the-Event Insurance page; the jurisdiction guides linked below set out the position forum by forum.
Specimen for explanation only. Terms, limits and exclusions are set by underwriting on each matter and by the wording issued.
Frequently asked
Does ATE insurance pay my own solicitors if I lose?
Only if the policy says so. Many ATE policies cover own disbursements but not solicitors' fees; own-fee cover is usually offered where the law firm is also sharing risk, for example on a discounted or conditional fee.
Does own-costs cover pay out if I settle?
It responds to the outcomes defined in the wording — usually losing at trial or discontinuing on the insurer's advice. Settlements are normally subject to the insurer's consent.
Is Own-Side Costs Insurance available for my dispute?
Availability depends on the merits, the quantum, the costs profile and the counterparty. Every risk is assessed individually and no cover exists until a policy is issued.
Does this quote a price?
No. Pricing is a function of the specific risk and is never quoted in the abstract. Nothing on this page indicates the cost or availability of cover.
Can it be combined with litigation funding?
Frequently, yes. Funding supplies capital; insurance defines the downside. The two are often structured together.
General information only. This page is not legal, financial, investment or insurance advice. Any insurance is subject to underwriting and to the terms of the policy wording issued.