Keystone Legal has launched its new “modular” after-the-event (ATE) insurance product which includes standalone cover for part 36 offers and a guarantee that the amount offered is the least the client will receive.
FlexProtect has three freestanding modules for cases where the prospects of success are in excess of 50%. Solicitors can add additional cover as the claim progresses.
The basic limit of indemnity for fast-track cases is £100,000, with everything bespoke for multi-track matters.
The first module, for disbursements, runs from the start of the case up to a part 36 offer or part 7 proceedings. It has a £100,000 limit of indemnity, with fast-track premiums of £35 for road traffic cases, £75 for employer’s liability, £100 for public liability and £125 for local authority slips/trips.
The second module covers adverse costs for the period from litigation beginning to a part 36 offer or the case conclusion. Fast-track premiums start at £100 for an RTA and rise to £300 for local authority slips/trips.
The third module provides part 36 cover and a full damages indemnity. This means that once a client has received a part 36 offer the solicitor feels is too low, Keystone will guarantee that offer, “giving peace of mind to the client whilst helping to allow the solicitor to get on with running the case further”, said director Andy Parker.
The premium for either track is 25% of the difference between the part 36 offer and the final settlement, subject to a discount if the case settles pre-issue. An advance on compensation is also available to clients.
Mr Parker said: “We have developed FlexProtect as a modular product for a number of reasons. Firstly, why should clients pay for more ATE cover than they need by using a ‘one size fits all’ solution? FlexProtect has ‘low start’ pre-issue premiums with the option to add additional modules of cover should the claim progress into litigation. In many scenarios we feel this offers a better value, best advice approach for solicitors mediating ATE insurance on behalf of their clients.
“Secondly, in our experience different solicitors have different approaches to running cases, often with a focus on or specialisation in running certain case types which can result in different requirements when choosing ATE cover. FlexProtect allows solicitors to tailor the product to the types of clients and cases they take on.”