No-win-no-fee lawyer vs legal expenses insurance
Legal expenses insurance is a policy you buy before a dispute starts; if the dispute is covered, the insurer pays legal costs up to a limit. A no-win-no-fee lawyer is paid from what you win. Check for existing cover first: many home, car and bank policies include it.
Frequently asked questions
Do I already have legal expenses insurance?
Possibly. It is often included as an add-on to home, car or bank account policies, especially in Germany, Austria and several other European countries. Check your policy documents or ask your insurer before paying a lawyer.
Can my legal expenses insurer force me to use its lawyer?
In the EU, Article 201 of Directive 2009/138/EC gives you a free choice of lawyer for any inquiry or proceedings, and whenever there is a conflict of interest; the Court of Justice has read this right broadly. Before that point, the insurer may handle the claim itself or use a panel firm.
Can I use both legal expenses insurance and a no-win-no-fee lawyer?
Sometimes. If the insurance limit is lower than the expected costs, a lawyer may agree success-based terms for the part the policy does not pay. Ask both the insurer and the lawyer to confirm in writing how they would work together.
Does legal expenses insurance cover a dispute that started before I bought it?
Normally not. Policies usually exclude disputes whose cause arose before the cover began, and many apply a waiting period after purchase.