After-the-event insurance advice failure highlighted

Nearly half of solicitors are failing to advise clients to take out after-the-event insurance against the cost of losing an action, despite being obliged to do so, a survey has revealed.The survey by insurers First Legal Indemnity revealed that of the 173 litigation solicitors surveyed, 40% admitted they did not discuss after-the-event insurance with clients.

However, 80% said they recognised that a failure to do so may result in them being sued for negligence.

The Law Society's costs information and client care code requires solicitors to raise after-the-event insurance with clients.A separate survey of 129 in-house solicitors revealed that 95% of respondents said their external lawyers were not discussing after-the-event insurance with them.

A further 60% said they had not been told that insurance premiums were now recoverable in conditional fee agreements.

Sue Allen