Our Frequently Asked Questions

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General FAQs

ATE

General Conveyancing

Residential Conveyancing

Commercial Conveyancing

Executor Liability

General Questions About Prosperity Insurance

What is Prosperity Insurance and who do you work with?

Prosperity Insurance is a specialist legal expenses and title indemnity insurance provider working exclusively with law firms, solicitors, insolvency practitioners and Conveyancers across England and Wales. We provide access to After the Event (ATE) insurance for litigation matters and conveyancing indemnity insurance for property transactions. We do not deal directly with members of the public – all enquiries must come through a qualified legal professional. We currently work with over 370 law firms across England & Wales.
What insurance products does Prosperity Insurance offer to law firms?

Prosperity offers two core product lines. ATE insurance protects litigation clients against adverse costs and disbursements across personal injury, clinical negligence, housing disrepair, commercial disputes, and insolvency matters. Conveyancing indemnity insurance protects buyers, sellers, and lenders against legal and title defects in residential, new build, and commercial property transactions – covering planning breaches, missing documents, absent easements, restrictive covenants, and search risks. Executor liability insurance and unoccupied property insurance are also available for firms advising on probate and estate matters.
Is there a minimum volume requirement to work with Prosperity Insurance?

No – there are no minimum volume requirements for either product line. Sole practitioners and smaller firms get the same access to products, facilities, and account management as larger practices. For ATE insurance, firms can access a delegated authority facility with pre-agreed premiums, or alternatively place cases on a bespoke individually assessed basis. For conveyancing indemnities, the online facility is open to all panel firms.
Can a law firm use Prosperity for both ATE insurance and conveyancing indemnities?

Yes – many of the 370-plus firms on Prosperity’s panel do. The two product lines are operationally separate: ATE insurance is arranged through a case-by-case or delegated authority process, while conveyancing indemnities are issued through an online facility. There is no requirement to use both, and no pressure to do so. Firms whose practice spans both litigation and property work benefit from a single dedicated Account Manager across both product lines.
How quickly can Prosperity Insurance provide a quote or issue a policy?

Speed varies by product. Conveyancing indemnity quotes are generated online within seconds, with policies issued within minutes for standard risks. ATE insurance turnaround depends on the route: Delegated Authority facility cases can be issued again on-line within minutes, while bespoke ATE insurance policies for complex one off or high-value litigation requires individual underwriting assessment and does take a little longer – typically between 3 to 5 working days.

After the Event (ATE) Insurance FAQs

Does my client still need ATE insurance if QOCS applies to their claim?

Yes – QOCS protection is narrower than it appears. It is lost entirely if a claimant fails to beat a defendant’s Part 36 offer. ATE also covers own disbursements. For commercial litigation, insolvency, and professional negligence matters, QOCS does not apply
When should ATE be arranged, and what happens if it's left too late?

As early as possible as long as the case has a minimum of 51% prospects of success – ideally before any significant disbursements are incurred and always before proceedings are issued. Disbursements incurred before a policy is bound are not covered retrospectively. Delaying risks a higher premium, reduced cover, or no cover being available as the risk profile changes. The SRA Code of Conduct also requires solicitors to discuss funding options – including costs protection insurance – with clients at the outset. Failing to raise ATE where clearly relevant creates both regulatory and negligence exposure if the client later suffers an uninsured adverse costs order.
Who pays the ATE premium, and is it recoverable from the defendant?

The premium is the claimant’s responsibility, but payment is fully deferred and contingent – only due if the case succeeds, paid from damages at conclusion. If the case is lost, the premium is waived and treated as part of the insured claim. Since April 2013, ATE premiums are no longer recoverable from the defendant in most claim types following LASPO. Limited exceptions remain – including certain privacy and defamation matters and a proportion of the expert evidence premium in medical negligence cases.
What is the difference between a delegated authority facility and a bespoke ATE policy?

A delegated authority facility allows a firm to issue ATE policies at pre-agreed premiums without referring each case to the insurer – suited to firms running consistent volumes in a defined area such as personal injury, clinical negligence, or housing disrepair. A bespoke policy is individually assessed by underwriters – appropriate for higher-value or complex one-off cases including commercial disputes, professional negligence, and insolvency litigation. Prosperity offers both, with no minimum volume requirements to access the delegated authority facility.
How is an ATE premium calculated, and what does it cost?

Two factors determine the premium: the limit of indemnity required – reflecting expected disbursements and the opponent’s likely costs – and the assessed prospects of success. For bespoke policies, premiums are staged based on how far the case progresses. As an illustration: a case with a trial premium of £20,000 might attract a premium of around £2,500 if it settles before proceedings, rising to approximately £5,500 on issue, and around £14,000 if a trial date is set. Delegated authority facilities offer standard pre-agreed premiums without per-case referral.

Conveyancing Indemnities FAQs

Why would a solicitor recommend an indemnity policy instead of resolving the defect directly?

Resolving a title defect at source – applying retrospectively for planning permission, tracing a missing deed, or pursuing a covenant beneficiary for a release – can take weeks or months and may not be achievable within a live transaction’s timeframe. An indemnity policy provides financial protection against the consequences of the defect without requiring it to be fixed, allowing completion to proceed on schedule. Clients must understand the distinction: the policy insures against the financial risk of enforcement – it does not remove the defect from the title.
Will a conveyancing indemnity policy be invalidated if the defect is disclosed to a third party?

Yes – standard policies contain a non-disclosure clause that voids cover if the defect is revealed to a third party after the policy is in place. This includes the local planning authority, a neighbour, or a covenant beneficiary. Clients must not contact the council, apply for retrospective consent, or take any steps to resolve the underlying issue once the policy is in force. Conveyancers should advise clients of this condition explicitly and record that advice on the file.
Will all mortgage lenders accept a conveyancing indemnity policy in place of resolving the defect?

Not always – and this must be confirmed before a policy is arranged. Most mainstream lenders accept indemnity policies for standard residential defects, but requirements vary by lender and are governed by the UK Finance Mortgage Lenders’ Handbook. Some lenders impose conditions on policy wording, minimum limit of indemnity, or insurer financial rating. For certain defect types – particularly on leasehold properties – some lenders will require the defect to be remedied rather than insured. Solicitors acting for both buyer and lender must satisfy each set of requirements independently.
How long does a conveyancing indemnity policy last, and does cover transfer to future buyers?

Policies last indefinitely – no renewal, no expiry, no ongoing premium. Cover is tied to the property rather than the owner, passing automatically to future buyers without notifying the insurer or arranging a new policy. The one-off premium is paid at completion, with buyer or seller bearing the cost as negotiated. When the property is sold in future, the existing policy documentation should be disclosed to the buyer’s solicitor as part of the title package – it remains valid and does not need replacing.
What is the difference between residential and commercial conveyancing indemnity insurance?

Both cover legal and title defects that cannot be resolved quickly or at source, but commercial policies address risks absent from or more complex in residential transactions – including mining and mineral rights, large-scale restrictive covenants, absent easements over commercial access routes, and no-search indemnities on development sites. Commercial cover is also typically structured to protect buyer and lender separately, with more detailed underwriting at higher property values. Residential policies cover everyday scenarios including chancel repair liability, absent landlords, insolvency risk under the Insolvency Act 1986, and new build search indemnities.

Residential Conveyancing Indemnities FAQs

Who can arrange a residential conveyancing indemnity policy?

Policies must be arranged through a solicitor, licensed conveyancer, legal executive, or an individual under their direct supervision. Prosperity cannot deal directly with members of the public. If you are a buyer or seller and your solicitor has identified a title defect or missing document, they will advise whether a policy is appropriate and arrange cover on your behalf. The premium is a one-off cost typically added to your completion statement rather than billed separately.
When is an insolvency act or deed of gift indemnity policy required?

These policies are required when a property has been transferred as a gift or sold significantly below market value within the five years preceding the current transaction. Under Sections 339 to 342 of the Insolvency Act 1986, a trustee in bankruptcy can apply to set aside such a transfer, leaving the current owner’s title at risk. Most mortgage lenders require this policy as a condition of lending. Solicitors must check the UK Finance Mortgage Lenders’ Handbook for lender-specific requirements. The seller will typically also need to provide a Declaration of Solvency.
What does a chancel repair indemnity policy protect against, and is it still relevant?

Chancel repair liability – rooted in the Chancel Repairs Act 1932 – can require certain property owners to contribute to the cost of repairing their local parish church chancel. Although rarely enforced, it remains legally valid. A policy covers repair demands from the parochial church council and associated legal costs. Since 2013, unregistered liability no longer binds new purchasers automatically – but liability already noted on a title register remains enforceable, making cover advisable wherever a risk is identified or a chancel search has not been carried out.
What is the difference between a no-search lender-only and a no-search buyer-and-lender policy?

Both protect where formal searches haven’t been carried out, but they cover different parties. A lender-only policy satisfies the mortgage lender’s requirements under the UK Finance Mortgage Lenders’ Handbook but provides no protection to the buyer – if an adverse matter later emerges, the buyer bears that risk personally. A buyer-and-lender policy covers both parties. Solicitors acting for both must ensure the policy meets both sets of requirements – arranging lender-only cover where the buyer also needs protection is a common and potentially serious error.
When is an adoption of roads and sewers indemnity policy needed on a residential purchase?

These policies are required when roads or sewers serving a property – most commonly on a new build or recently developed site – have not yet been formally adopted by the relevant authority. Until a Section 38 agreement is completed with the local highway authority and a Section 104 agreement with the water authority, roads and sewers remain the developer’s responsibility. If the developer becomes insolvent before adoption is completed, remediation costs could fall on residents. Lenders typically require this cover as a condition of mortgage offer on unadopted road and sewer situations.
Can a single indemnity policy cover multiple defects identified on the same property?

Generally no – policies are issued on a per-defect basis, with a separate policy required for each distinct legal issue. A property with both a missing building regulations certificate and a restrictive covenant breach would typically require two separate policies, each with its own risk profile, conditions, and limit of indemnity. Premiums are usually modest individually, so multiple policies on a single transaction are not uncommon. Where several related defects arise from the same underlying issue, contact the team – in some circumstances a single policy can be structured to address more than one connected risk.

Commercial Conveyancing Indemnities FAQs

How does the underwriting process for commercial indemnity policies differ from residential?

For standard commercial risks – absent easements, restrictive covenants, missing documents, no-search scenarios – the process mirrors residential: quotes generated online within seconds, policies issued within minutes. The distinction arises on higher-value or complex risks where the defect type, property value, or development context falls outside standard parameters. Those cases require bespoke underwriting – more information upfront and longer turnaround. Prosperity’s team will identify at the outset which route applies, so solicitors are not left waiting on a case that could have been issued instantly.
How should the limit of indemnity be calculated on a commercial property transaction?

The limit should reflect full financial exposure if the defect were enforced – not simply the purchase price. On commercial transactions that typically means accounting for current market value, anticipated development or change of use uplift, potential loss of rental income, and likely third-party enforcement costs. Underinsuring is a material risk: a limit set at purchase price may be exceeded if the property increases significantly in value. For transactions involving development potential or investment value, discuss the appropriate limit with your Account Manager before the policy is bound.
Can a no-search indemnity policy be used on a commercial transaction, and what does it cover?

Yes – commonly used where time pressure, search delays, or lender requirements make proceeding without formal searches necessary. Two distinct policy types exist: a lender-only policy satisfies the lender’s requirements but leaves the buyer unprotected; a buyer-and-lender policy covers both parties against any matter an up-to-date search would have revealed. Solicitors acting for both parties must ensure the policy meets both sets of requirements – the lender’s specific requirements under the UK Finance Mortgage Lenders’ Handbook must be confirmed before proceeding.
Can a commercial indemnity policy be arranged where a restrictive covenant affects a development site?

In many cases yes – but insurability depends on the covenant’s specific circumstances. Historic covenants where the beneficiary is unknown or absent, or where there has been no enforcement action for a significant period, are generally more straightforward to insure. Active covenants with an identifiable, engaged beneficiary are considerably harder to place and in some cases uninsurable. Contacting the covenant beneficiary or drawing attention to the breach before a policy is in place will likely make the risk uninsurable – the non-disclosure principle applies here as on residential deals, with significantly higher stakes.
Where a solicitor is acting for both buyer and lender, can a single commercial indemnity policy satisfy both sets of requirements?

Sometimes – but this should never be assumed. Some commercial policies cover both buyer and lender within a single policy; others are lender-only and provide no buyer protection at all. Solicitors acting for both parties carry independent obligations to each, and a policy satisfying the lender may still leave the buyer exposed. The lender’s requirements – including acceptable policy wording, minimum limit of indemnity, and insurer financial rating – are set out in the UK Finance Mortgage Lenders’ Handbook and vary by lender. Both sets of requirements must be confirmed before the policy is bound.

Executor Liability Insurance FAQs

Can an executor be held personally liable for claims brought against the estate?

Yes – and exposure extends further than most executors anticipate. Distributing estate assets before all debts, taxes, and potential claims are settled can leave an executor personally liable to repay creditors from their own funds. Claims under the Inheritance (Provision for Family and Dependants) Act 1975 must generally be brought within six months of the Grant of Probate, but challenges to a will’s validity carry no limitation period – they can be brought at any time. Executor Liability Insurance covers the legal costs of defending those claims.
Does a solicitor's professional indemnity insurance cover claims brought against the estate?

No – and this is the most important distinction when advising clients. A solicitor’s PI insurance covers claims arising from the firm’s own mistakes – a probate application error, a tax miscalculation, or failure to identify a creditor. It does not cover third-party claims against the estate itself, such as a will validity challenge, a Financial Provision claim under the Inheritance (Provision for Family and Dependants) Act 1975, or a constructive trust claim. Those claims are directed at the executor personally. Executor Liability Insurance covers that gap directly.
What types of claim does an executor liability policy cover?

A policy covers legal costs – including court and mediation fees – of defending claims against the estate following the Grant of Probate. Covered claim types include: a challenge to the will’s validity; a financial provision claim under the Inheritance (Provision for Family and Dependants) Act 1975; a charity claim after distribution; a challenge to a charitable legacy; a proprietary estoppel claim; and a constructive trust claim. Cover applies during administration and, in certain circumstances, after the estate has been distributed – when executor exposure is often highest.
Does the policy still provide cover after the estate has been distributed?

Yes – and this matters because serious claims frequently arise post-distribution. A will validity challenge carries no limitation period and can be brought at any time. Inheritance Act 1975 claims must generally be made within six months of the Grant of Probate, but executors who distribute early remain personally exposed if a valid claim emerges. Prosperity’s policy covers claims made in certain circumstances after distribution. Payment can also be deferred for up to six months – a useful feature for clients managing cash flow during a lengthy administration.
When should an executor liability policy be arranged, and who can take it out?

As early as possible – before the estate is distributed and always before any claim has been notified or threatened. As a Before the Event product, cover must be in place before a claim arises; it cannot be arranged retrospectively. Policies must be arranged through a solicitor or qualified legal professional – they cannot be taken out directly by lay executors or family members. The policy covers the executor or administrator named in the Grant, whether a professional executor or a family member acting in a personal capacity.

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Our Frequently Asked Questions

We are asked a variety of questions by clients on a daily basis, so we’ve put some of them together for you.

Can’t find what you’re looking for?

Find an answer to your question.

General Questions About Prosperity Insurance

After the Event (ATE) Insurance FAQs

Conveyancing Indemnities FAQs

Residential Conveyancing Indemnities FAQs

Commercial Conveyancing Indemnities FAQs

Executor Liability Insurance FAQs

Testimonials

Andrew Williams and the Prosperity Insurance team provide an efficient and transparent turnaround on ATE quotations and policies meaning that our clients can press on quickly and efficiently with their litigation to try and achieve the best possible result.

We have been using Prosperity Insurance now for a good while and find it pain free and without fuss. Andrew and his team have been on hand for any queries, and we look forward to working with them for the foreseeable future.

We have been working with Prosperity Insurance for several years now. Andrew and the team have been very helpful and supportive in delivering sterling service and advice. There is no doubt that we will continue to do business together. Thanks again Andrew and the team for your invaluable assistance.

Having worked with Prosperity and Andrew Williams for approximately 12 months, I am continually impressed by their straightforward offering and ease of delivery. They value quality work and provide a quality ATE offering which is well suited to our clients.

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