Zero Success Fee – Understanding How Serious‑Injury Claims Are Funded
Funding a serious‑injury claim can feel confusing, especially when different firms use different models. This guide explains how funding works in the UK, why some firms take large deductions from compensation, and how the Zero Success Fee model operates for eligible serious‑injury claims.
This page is informational only. It is not legal advice, and this site does not offer legal services.
How Funding Usually Works in Serious‑Injury Claims
Many people are surprised to learn that most law firms take 25–45% of a client’s compensation through a combination of:
- success fees
shortfalls (the difference between their hourly rate and what the insurer pays)
liability deductions
percentage‑based charges
These deductions come on top of already generous hourly rates and can significantly reduce the amount a person receives.
What this means in practice
If a firm applies a 25% deduction:
A £20,000 payment becomes £15,000
A £50,000 payment becomes £37,500
A £100,000 payment becomes £75,000
These reductions apply to interim payments as well as the final settlement, which can affect rehabilitation, care, equipment, housing adaptations and long‑term support. All figures here are based on the providers that I currently work with and other firms may operate on different terms, so this is just an example.
What Zero Success Fee Means (For Eligible Claims)
For eligible serious‑injury claims, the Zero Success Fee model means:
no success fee
no shortfalls
no percentage deductions
no reduction to interim payments
This ensures that compensation is used for rehabilitation, care, adapted housing, specialist equipment and future‑needs planning — not legal deductions.
This explanation is provided for general understanding only.
The Only Cost: ATE Insurance (Payable Only if the Case Succeeds)
Serious‑injury claims usually include an After‑the‑Event (ATE) insurance policy, which protects clients from financial risk.
For claims over £500,000, the premium is:
£5,499 or
£7,499 plus 12% Insurance Premium Tax (IPT)
Important points:
The ATE premium is only payable at the end of the case
It is only payable if the claim is successful
It is not payable if the case is unsuccessful
It is the only deduction under my zero success fee model but some firms may vary this.
This section is educational and not an invitation to begin a claim.
Why Funding Matters in Serious‑Injury Cases
Serious injuries often require:
long‑term rehabilitation
psychological support
adapted housing
specialist equipment
care packages
vocational rehabilitation
future therapy and treatment
Because these needs are expensive, deductions of 25–45% can have a significant impact on long‑term recovery and stability.
Understanding funding models helps people make informed decisions.
Who This Information Applies To
The Zero Success Fee model is used for eligible serious‑injury claims, including:
brain injury
spinal cord injury
spinal injury
amputation
burns and scarring
orthopaedic trauma
loss of sight
loss of hearing
chronic pain
This page is a general guide only and does not constitute legal advice.