A7. This is a popular system adopted by claims management companies and law firms which means that you don’t pay if you lose your case.
But you will be advised to take out insurance when making a claim to cover the other side’s costs that you would otherwise have to pay for. This insurance underwrites this risk.
If you win then you are awarded compensation plus expenses which are paid for by the losing side. But to ensure that your lawyer or solicitor does not work for free he/she is entitled to a ‘success fee’which is awarded at the same time.
This is discussed in more detail in our taking legal action section.