The Current State Of The Law On Adverse Costs Insurance

This type of insurance has multiple names: adverse costs insurance, trial insurance, and after the event insurance. For the purposes of this paper, we will identify it as adverse costs insurance. This insurance policy protects personal injury plaintiffs against their own disbursements incurred and opposing counsel's costs if they are unsuccessful at trial or even a motion. Generally, unsuccessful parties bear the responsibility of paying an often significant portion of the successful side's legal costs in addition to their own. The availability of adverse costs insurance changes the landscape of personal injury litigation for everyone involved. While the concept of adverse costs insurance is relatively new in Ontario, it is already rapidly evolving and becoming more prevalent.