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A NEW after-the-event legal insurance policy for conditional fee arrangements (CFAs) is due to be launched this week by two ex-employees of troubled legal insurer Brian Raincock.
Last week The Lawyer revealed that Raincock's company Litigation Protection had lost its contract with its sole underwriter, Isle of Man Assurance, eight of his legal insurance companies' staff had departed, and there had been a management buyout of his conveyancing indemnity company Legal & Contingency.
This week ex-Litigation Protection employees Deri-Ann Clark, who left in April, and Michael Cant, who left 18 months ago, are launching a CFA after-the-event insurance policy from professional indemnity insurer Saturn Professional Risks, where they both now work. The policy is being underwritten by Norman Insurance Company and Lloyd's.
Clark said she had "lots of contacts" in the legal world from her time at Litigation Protection and that several firms had already indicated an interest. She said Guinness Mahon was interested in providing disbursement funding for the policy, which can be used for both CFA and privately funded litigation.
The launch is the fourth CFA insurance policy to hit the market. The Law Society's Accident Line Protect scheme and Litigation Protection launched in 1995, while Amicus legal unveiled a range of policies in April.