Poll Suggests SMEs Unaware of Litigation Funding Options

A recent YouGov poll indicates that 52% of SMEs would not consider legal action due to the perceived level of costs involved. Furthermore, 40% of those questioned were unaware that funding arrangements are available in commercial disputes. Whilst this can be true in some instances, the existence of CFAs and After The Event insurance (ATE) has dramatically mitigated this risk in recent years.

Such mechanisms allow the client to share the risk with their solicitor and the insurer, dramatically reducing the risks associated with pursuing legal action. In the event that the claim is unsuccessful, a CFA may state that the client’s own fees are no longer payable and an ATE policy would protect the client from paying the other side’s costs.

TheJudge has a wealth of expertise in brokering after the event insurance policies and litigation funding options for small and medium sized commercial disputes. Contact one of the team should you have any questions about litigation insurance and/or funding or how to make an application.