COSTS & FUNDING EXPLAINED (SUCCESS FEES, SHORTFALLS & ATE - INSURANCE)
Serious injury claims must be funded safely, transparently and without unexpected deductions. This page explains how success fees work, how shortfalls arise, how ATE insurance protects you, and how funding is managed throughout a serious injury claim. Costs and funding in serious injury claims can be complex.
Rose Gibson
No‑win, no‑fee funding:
Most serious injury claims are funded through a Conditional Fee Agreement (CFA). Under a CFA:
• You pay nothing upfront
• You pay nothing as the case progresses
• You only pay a success fee if the claim succeeds
• The success fee is capped by law
• Most legal costs are recovered from the defendant
This structure ensures injured people can pursue a claim without financial risk.It is important to be careful when considering costs and funding in serious injury claims.
Success fees
Success fees compensate solicitors for the risk of running the case without payment if it fails. Key points:
• Success fees are often capped at 25% of past losses and general damages, but can be more. 0% success fee lawyers like me are rare.
• They cannot be applied to future losses
• They must be explained clearly at the outset
•They must be fair and proportionate
• They should never reduce the compensation needed for future care or rehabilitation
A clear funding agreement prevents unexpected deductions later.
Shortfalls- often 'hidden deductions'
Not all costs are recoverable from the defendant. Shortfalls may arise from:
• Expert fees above guideline rates
• Additional rehabilitation or case management input
• Complex evidence requirements
• Specialist reports
• Court fees or procedural costs
Shortfalls are usually covered by the success fee or ATE insurance.
ATE insurance
After‑the‑Event (ATE) insurance protects you from paying the defendant’s costs if the claim fails.
It also covers:
• Expert fees
• Court fees
• Disbursements
• Investigation costs
• Other litigation expenses
ATE premiums are usually deferred and self‑insured, meaning they are only payable if the claim succeeds at the end of the case.
Interim payments and rehabilitation funding
Interim payments provide early financial support during the claim. They can fund:
• Rehabilitation
• Case management
• Equipment
• Housing adaptations
• Care packages
• Transport and mobility needs
Interim payments reduce pressure and allow rehabilitation to progress without delay.
Case management and cost control
Case managers help ensure rehabilitation funding is used effectively. They provide:
• Clinical justification for rehabilitation
• Coordination of services
• Monitoring of costs
• Evidence supporting future needs
• Reports that assist the legal claim
Case management evidence is central to demonstrating long‑term cost requirements.
Costs within the litigation process
Costs and funding interact with every stage of the claim:
• Early investigations
• Expert evidence
• Rehabilitation
• Interim payments
• Negotiations
• Litigation
• Settlement
Clear cost management keeps the claim proportionate and sustainable.
Settlement and compensation
At settlement:
• Future losses are protected
• Success fees apply only to past losses
• ATE premiums are deducted if applicable
• No deduction should compromise long‑term care or rehabilitation
• Compensation must meet lifelong needs
The aim is to secure funding that supports independence and recovery.
Fatal accident claims
Funding arrangements also apply to fatal accident claims.
Costs may include:
• Inquest representation
• Expert evidence
• Dependency claims
• Psychological support for families
• Litigation costs
Funding must be explained clearly to bereaved families.
Further information
Specialist advice is available if you have questions about costs, funding, deductions or success fees.
If you are reading this page and have questions, you are welcome to call or message me on 07584131931/Email:rose@seriousinjurylawyer.online