A. First Legal Indemnity litigation costs insurance has been developed by solicitors and insurance experts. The insurers are QBE Insurance (Europe) Limited and other leading insurance companies. First Legal Indemnity Limited is the underwriter assessing the risk, issuing the policy and administering the insurance.

A. No. Opponent's Costs and Disbursements and Insured's Costs and Disbursements are equally valuable products when used in litigation where there is no conditional fee agreement. For example, Opponent's Costs and Disbursements cover may be a satisfactory alternative to making a payment into court in respect of security for costs.

A. Yes. We normally only cover proceedings issued in England and Wales, however, if your litigation is in another jurisdiction please contact us and we will tell you if we can help.

A. Simply complete a proposal form and submit it to First Legal Indemnity, together with supporting documentation. If you have any queries whilst completing the form, your enquiries will be dealt with by First Legal Indemnity who can be contacted by telephone on 020 7977 1408 or by fax on 020 7977 1409 or by e mail on info@firstlegal.co.uk. A proposal form can also be downloaded from the First Legal Indemnity website at www.firstlegal.co.uk.

A. Applications can be made at any stage from prior to commencement of proceedings up to 8 weeks before trial. Generally speaking, the earlier in the proceedings you make the application the more chance you will have of obtaining insurance cover.

A. A number of factors are used in calculating the premium including the amount of cover required and the merits of the case. The proposal form requires an assessment of the merits of the case and you will usually be expected to have obtained Counsel's opinion on the merits. If First Legal Indemnity require further information you will be contacted and asked to provide this.

A. There is no set limit and each proposal will be treated on it's merits. The products have been designed for High Court and other complex litigation or disputes where costs will be substantial.

A. This is sometimes known as the "deductible" or the "excess". There will usually be a deductible payable by the Insured which will be specified in the policy schedule. It is normally set at £5,000.

A. TThis is usually known as "co-insurance". There may be a percentage amount specified in the policy schedule which will be borne by the Insured at their own risk which will be in addition to the amount payable by the Insured as a deductible.

A. This will vary from case to case depending on the issues and documentation involved, however, First Legal Indemnity will aim to deal with proposal forms and provide an initial indication within 7 working days.

A. No. There is no administration charge on submission of the proposal form.

A. Cover commences as soon as the offer of insurance is accepted and the premium is paid, unless the insurer agrees to defer the premium in which case cover incepts on acceptance of the offer of insurance.

A. Yes, with the prior approval of the Insurer. Prior to a policy being issued, the Insurer and the Insured will agree a settlement figure that would be acceptable to the Insured. This amount can be reviewed from time to time, by agreement. If the Insured is not prepared to accept an offer greater than or equal to the settlement figure, then the Insurer can either cancel the policy or agree to continue the insurance for an additional premium. The Insurer's prior written approval must be obtained before any settlement is entered into.

A. Yes, subject to the type and level of cover and the exclusion clauses in the policy, but the Insurer will only be liable up to the limit of indemnity to the extent that costs payable by the insured exceed the damages awarded to him.

A. The policy does not cover the insolvency of the opponent.

A. Not normally, however, this is possible. It may, for example, be necessary in the case of Opponent's Costs and Disbursements, where the purpose is to provide security for costs.

A. These are set out, by way of illustration only, in the policy which requires disclosure of all material developments in the litigation and a brief report at least once a month.

A. Section 29 of the Access to Justice Act 1999 provides for recovery of insurance premiums by way of costs. Subject to the discretion of the Court, the premium should be recoverable as part of an order for costs provided that it is reasonable.

A. This may be possible but the Insured must make its' own arrangements with a lender. First Legal Indemnity has no agreements with financial institutions whereby financing packages may be available to provide loans for the Insured's costs and disbursements.

A. Opponent's Costs and Disbursements
A claim can be made at the conclusion of the proceedings. If an award of costs is made during the proceedings on the basis either that it is assessed and payable forthwith, or an interim award of costs is made, then the insured must pay those costs pending the conclusion of the legal action and a claim under the policy.

To the extent that the Insured's liability for Opponent's Costs and Disbursements exceeds the damages or costs payable by the Opponent to the Insured a claim can be made at the conclusion of the proceedings in the event of an order for costs in favour of the opponent; where there has been a failure to beat a payment into court and the litigation has continued with the consent of the Insurer; where litigation has been abandoned by consent, subject to payment of the Opponent's Costs and Disbursements (with the prior approval of the insurer); where there has been a notice of discontinuance (again, with the prior approval of the Insurer); or if the opponent successfully appeals against an original judgment in favour of the Insured and obtains an order for costs in the court of first instance. Where there is a claim under the policy the Insurer has the right to insist that the Insured subjects the Opponent's Costs to a detailed assessment and the Insured has an obligation to keep Opponent's Costs and Disbursements to a reasonable minimum.

Insured's Costs and Disbursements
A claim can be made at the conclusion of the litigation to the extent that the Insured has failed to recover damages or costs which equal the level of Insured's Costs and Disbursements. These are not assessed, but the Insured has an obligation to keep these costs and disbursements to a reasonable minimum.

A. Mutual awards of costs will be set-off and, insofar as there is any balance of Insured's Costs in excess of costs and damages awarded to the Insured, subject to the limits of the policy, the Insurer will be liable for the balance.

A. As with all policies of insurance, there are matters that vitiate the policy such as misrepresentation or fraud. Exclusions include: the insolvency of the defendant; any costs incurred arising out of defending a counterclaim (unless these are included into the policy by endorsement); a failure to beat a payment into the court unless the proceedings have continued with the prior approval of the Insurer; any litigation costs incurred by virtue of the negligence insofar as they are in excess of any damages paid to the Insured; any litigation costs incurred where the claim is abandoned before the proceedings have been issued; any litigation costs incurred if the litigation is discontinued as a result of the Insured's lack of funds; any litigation costs incurred in connection with an application by the defendant for security for costs.