Contingent Fee
Updated: 22 October 2024
What Does Contingent Fee Mean?
A contingent fee is a payment method in which compensation is made only after a specific objective is achieved. Insurance brokers often operate under contingent fee arrangements, receiving payment only when a sale is finalized or a contract is signed.
Insuranceopedia Explains Contingent Fee
It is quite common for certain types of lawyers to be compensated on a contingent basis. Personal injury lawyers, for example, often work on contingency. If a personal injury lawyer wins a court case on behalf of a plaintiff, the insurance companies involved may be required to pay substantial sums to the plaintiff, a certain percentage of which will be paid to the attorney.
