What if you were able to derive some immediate, tangible benefit from an after the event (ATE) insurance policy, which releases cash back into the business which is otherwise held on your balance sheet, enabling profit and growth expansion?
Furthermore, what if this came with no interest nor drawdown fees and wasn’t subject to the financial complexities associated with traditional funding and the consumer credit act, making it less burdensome for you and easier for your clients to understand?
Welcome to (PAID), our acronym for Paid as Incurred Disbursements, Allianz Legal Protections (ALP’s) innovative solution to support specialist personal injury and clinical negligence law firms with the costs associated with disbursements.
Our new initiative enables law firms to receive an immediate benefit from their ALP ATE policy, easing the cash flow burden that firms face with disbursement expenditure.
Following extensive research, it was apparent that the number one issue for law firms is cash flow, with the amount invested with work in progress restricting profit and growth ambition.
In recognition of this feedback, we designed and launched our PAID facility, which enables law firms to make an early claim for costs incurred on disbursements against their ALP ATE policy. If the case is subsequently successful then any claim payment made is then repaid once recovered along with the ATE insurance premium.
Unlike funding arrangements, a key feature of our PAID facility is that it is not a loan and therefore not subject to interest or drawdown fees. Instead, it simply allows for a claim to be made for disbursements as incurred rather than at case conclusion. This makes the model easier for law firms to explain without the need to have the client enter into a separate consumer credit agreement.
At ALP, we’ve always seen it as our role to support the law firm and their clients through the claim and litigation process. Paying disbursements as incurred was a natural evolution to our ATE product offering, especially as law firms are coming under increased cash flow pressure as a result of fixed costs and higher court fees.
By supporting specialist clinical negligence and personal injury law firms with PAID, we’re helping contribute to the firms planned growth expansion by releasing cash back into the business to allow for such things as: -
• Increased marketing activity to generate new work.
• Being able to invest in running more cases.
• Improving case settlement times through by removing delay in gaining expert reports or the issuing of proceedings.
Being part of a global insurer, we have the financial strength and technical expertise to help law firms reduce disbursement exposure on their balance sheet.
This is not new insurance, just a different approach to working with specialist law firms that enables them to benefit and grow by releasing cash back into their business which is otherwise tied up with work in progress.
In an evolving market, we continue to be at the forefront of delivering innovative, profitable and sustainable ATE solutions for solicitors and specialist brokers.