If you only recovered a very small amount of damages then you could go into a negative figure i.e. the amount you owed the funder for the cost of funding might be more than the damages you receive. 

The worst-case scenario for you in those circumstances is that you would end up with either very little, or even absolutely nothing by way of damages even if you won. 

However, you would not have to pay the funder back anything out of your own pocket, and so if the amount of damages was not enough to repay the funder for the cost of funding, you would have to pay all your damages over to the funder, but the insurance policy would cover you in respect of any shortfall owing to the funder.  This is another benefit of the insurance cover provided which is outside the norm.

We hope that this explanation is of assistance.  If you have any queries whatsoever then please do not hesitate to pick up the phone and give us a call, and we will be happy to answer them as best we can.

Call 0845 241 2076 

If you lose your claim then the After the Event (ATE) insurance cover will come into operation.  It will pay your opponent’s costs, and repay the funders everything they have paid on your behalf.  The insurance cover will have some benefits that are additional to the norm, and so it will also repay all the interest that has accumulated on the funding you have used, and it will repay the funding fee, and the cost of the insurance.  If you lose your claim there is therefore nothing for you to pay.