How much does it cost to make an injury claim?Updated: October 16, 2020
No win no fee takes the financial risk out of making a work injury claim. But what do you pay if your claim is successful and are there any hidden costs or fees you need to be aware of?
No win no fee
It may be possible to pursue a claim through your union or private insurance if it covers work accidents. However, the vast majority of people injured at work pursue a compensation claim through a No Win, No Fee agreement with a solicitor.
A No Win, No Fee agreement, technically called a Conditional Fee Agreement (CFA), enables you to claim financial compensation with no upfront financial risk.
Under the No Win, No Fee agreement, a solicitor agrees to represent you on a ‘success fee’ basis. If your claim is successful your solicitor will receive a success fee. If your claim is unsuccessful, the solicitor is paid nothing.
What, exactly, will it cost me if I win?
Success fees are calculated as a percentage of your final compensation award or settlement. By law, the maximum success fee a solicitor can charge you is 25% of your compensation.
To get an estimate of the amount of compensation you will receive, see our work injury claim calculator.
Your solicitor can explain the success fee and any other deductions with you at the outset of the claim.
So a 25% success is deducted from the compensation award?
The percentage success fee will vary from case to case, but it cannot exceed 25%. They may also be other deductions, including for Legal Expenses Insurance (sometimes called After the Event or ATE insurance. This insurance is required in order for your solicitor to work on a No Win, No Fee basis.
As the law currently stands, claimant awards for general damages are increased by 10% when the claim is being funded by a No Win, No Fee agreement.
In 2013, the law changed to prevent claimant’s solicitors from being able to recover then cost of the success fee from the defendant. This prompted a review of the law which culminated in a 10% ‘uplift’ of general damages for No Win, No Fee claimants.
Are there any other costs?
Yes. If you don’t win your claim you are technically responsible for the defendant’s legal costs. Thankfully, No Win, No Fee agreements have another component called After the Event Insurance (ATE) which covers these costs.
It is the ATE Insurance policy that ensures that a No Win, No Fee claim is risk-free to the claimant.
If your solicitor accepts your claim it means they think they have a good chance of winning. As a result, ATE insurance is not expensive. Ask your solicitor about the cost of this before your sign anything. In most cases, the costs of the policy will be between £100 and £200.
The cost of the policy is deducted from your compensation only if you win. You do not have to pay for the policy if you lose.
Are there any potential hidden fees?
There should not be any hidden fees and the CFA you sign should make all fees and costs completely transparent.
Some solicitors' terms have clauses where fees could apply in certain circumstances, such as:
- Fees for if you decide to stop communicating or co-operating with your solicitor
- The defendant cannot afford to pay the solicitors fees
- The solicitor secures a compensation offer, advises you to accept but you refuse
Make sure you read the CFA carefully and raise any concerns with your solicitor before you sign anything.
When do I pay?
With a No Win, No Fee agreement, you never have to pay any money upfront. If your case is unsuccessful you pay nothing and if you win, the success fees are deducted from your compensation after it has been awarded.
Have you been injured at work?
If you have been injured at work in the last 3 years, you may be able to claim financial compensation.
Find out more about making a work accident claim:
- Do you qualify?
- How much compensation could you get?
- How does No Win, No Fee work?
Read more: Work accident claim guide
Our work injury advisors will:
- Offer free, impartial advice
- Explain how No Win, No Fee works
- Recommend the right solicitor