BEFORE THE EVENT (BTE) INSURANCE

Before The Event INSURANCE - BTE

Before the Event Insurance – otherwise known as “BTE insurance” is a legal expenses (class 17) insurance, that enables customers to buy this niche insurance in order to provide protection against potential legal costs that could arise from a personal legal dispute or even a business-related dispute. This insurance is taken out before an incident occurs unlike an ATE Insurance policy.

Such legal disputes can result in very expensive litigation and BTE legal expenses insurance is therefore a cost-effective solution for all parties, including both business and personal customers.

Many business owners will already have some sort of business insurance covering various outcomes such as fire, flood and theft etc. Sometimes businesses can have the benefit of before the event insurance already attached to the policy for free, but other times, they may have to buy it as a stand-alone policy.

As noted above, it is possible to purchase BTE LEI as a stand-alone insurance, usually from a broker, however it is far more common these days that most BTE policies are simply added to existing insurances as an ‘optional extra’ that needs to be positively selected by the client, and that applies to both retail clients and commercial clients. The days of assumptive upselling of BTE legal expenses insurance are long gone.

When considering buying LEI cover, you should think about any other insurance policies that you may already have, as you may already be insured for it, and any further purchase of BTE insurance would simply duplicate cover, but not give you any more protection for the extra premium paid.

Remember to carefully read your BTE insurance policy, so you know exactly what you are covered for, and how it should respond in the event of a potential legal dispute.

What does BTE insurance do?

BTE Legal expenses insurance provides an indemnity for costs, so that in the unfortunate event of you requiring legal advice or assistance, the insurance company will step in and pay the cost of that advice, and any subsequent legal fees, including your own and the other sides if you lose your case.

What if you have a legal dispute?

If you do have a legal dispute, you must notify your BTE legal expenses insurers as soon as possible, as many policies will require you to notify the insurer as soon as you become aware of a possible legal case. If you don’t do this, the insurer could refuse cover entirely.

What will BTE insurance usually cover me for?

BTE Insurance will usually pay for:

your solicitor’s own costs and fees and most disbursements funded;
the cost of expert witnesses if required;
court fees, and
your opponent’s legal costs if you lose your case.
Helpline advice.

The above are the generic costs covered by a BTE policy, although there will be some slight differences between providers, so always compare cover versus price if you can.

What won’t BTE insurance cover?

Most BTE legal expenses insurers will not cover compensation that you are ordered to pay if you lose your legal claim. They also exclude pre inception costs incurred, fines, penalties, divorce and matrimonial matters, along with many other exclusions, so again, do check your BTE legal expenses policy wording carefully.