Q. Is there any type of insurance available to cover me for my legal costs?
It is possible to obtain insurance cover against both your own and the other side's legal costs It is rarely cost effective to obtain cover on claims below £5,000 where you are not expecting a defence. Claims above this level or where a dispute is expected may be appropriate for cover and each case can be individually insured if an underwriter can be found who considers the risks acceptable for the premium that they want to charge. In our experience, an undefended claim between £5,000 and £15,000 is likely to require a premium equal to 25-30% of the debt value. On higher value claims brokers may charge anywhere between 20% and 50% of the debt value. There is a possibility of recovering the premium from the defendant. At any time that you need advice on this type of insurance for a specific claim that we are handling, please contact the solicitor in charge of your case.

Q. Can I insure against bad debts?
Yes you can. Whilst we are not authorised to provide advice on specific policies, our Credit Management consultancy team can assist you with choosing a broker or insurer who would be able to consider the risks associated with the credit that you grant in order to trade.

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