(After-the-Event) Insurance

An insurance policy taken out by one of the litigation parties, after the event giving rise to litigation (for instance an injury). It is meant to cover the risk of having to pay the costs of the other party if the latter wins the case, but also if the policy holder is successful, it should cover the costs of his lawyers to the extent not recoverable from the losing party. This type of insurance exists in systems where the 'loser pays rule' applies - especially in the UK.

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