This article is by Ian Hu, claims prevention & practicePRO Counsel at LAWPRO.
Adverse cost protection is a relatively new insurance or quasi-insurance product which can help lessen the financial blow of a lost case for both the client and lawyer. It may also be called adverse cost insurance, legal expense insurance, or after the event (ATE) insurance. While there is no standard contract or policy, the adverse cost provider will generally pay some amount of costs, fees, and/or disbursements should the client’s case lose. The premium or cost of the contract may be paid as a percentage of the . . . [more]