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Event insurance, or after the event insurance, is a specific insurance type that is designed to protect insured’s from legal costs should a case be taken to court. The reason it’s known as after the event insurance is because it’s just that, purchased after the incurring event.

The contrast to this is that known as before the event insurance. This is a type of protection insurance that will be purchased in order to protect people from legal fees should an event occur that they insured needs legal protection.

There are many types of insurance policies that are going to have before the event insurance as a build in. something; such as, a car insurance policy is going to have this type of insurance clause that will help cover any legal damages should there be a car collision.

When and Why To Purchase

When someone believes that they may be going to court with a case an insurance company is able to write an after the event insurance policy that will cover the insured’s incurred legal fees. If the client wins the case the other side will usually be paying the fees as well as the premium payment of the after the event insurance. Should the client lose the case the insurance company will be required to cover the expenses that the insured would otherwise be obligated to pay.

Premium Payment

Most commonly the premium payment won’t be due until after the conclusion of the legal case. With the client that wins the cost of the premium is going to be passed onto the loser in combination with the legal fees where applicable. Should the client lose the insurance policy may have a clause that also insures the premium so the client does not end up having to pay that in the end.

The Attorney

The attorneys that take cases on a contingency will often ask clients to buy an after the event insurance policy so that if they should lose they will still get some compensation. You should also consider that it is a good idea to consult a lawyer when you do choose to purchase such insurance even if there is not the distinct knowledge that a case is going to end up in court.

The reason why you should consult a lawyer is that the lawyer can have some suggestions about insurance companies that you should consider using and also that they can review the policy to make sure that it is suitable and effectively written. Especially if this is the same lawyer that is taking your case on a contingency they have a distinct advantage to making sure your policy is suitable to the situation if your case goes to court.

This type of insurance product is a specialty product thus it will not be offered by all insurance companies. Even those that do issue them they will review the situation very carefully before they will issue a policy. By carefully reviewing a situation they will be able to determine exactly how much risk is involved when they issue the policy. In addition to the careful review there are many of the issuing insurance companies that will write a custom policy that will specifically tailor the situation to the policy.

When you go forward with a purchase of an after the event policy the clients should make sure that the policy is going to be one that will fully cover both them and the case. When purchasing you will want to make sure that you ask how the premium is going to be handled.