Disbursement guarantee

Wherever possible you should avoid disbursement exposure. The two main ways of doing this are: (i) ensure you have adequate Costs on Account; or (ii) agree with the supplier that the client, rather than us, is liable for the costs. This can be achieved either by the client engaging the third party directly or by the third party agreeing in writing that we will not be responsible for payment unless and until we have been paid ourselves.

Be that as it may, we understand that this might not always be possible. A balance, therefore, has to be struck between avoiding excessive financial exposure and requiring Costs on Account only in appropriate circumstances.

Keystone operates a Disbursement Guarantee which works in the following way:

1. Keystone shall cover up to £2,500 (plus VAT) of disbursement exposure in aggregate per client, provided that: (i) client consent has been obtained for disbursements of at least £300 as per our Terms of Engagement; and (ii) the disbursement is logged on the client ledger promptly.
2. You are personally responsible for any disbursement exposure you create over £2,500 and any exposure at all that you do not promptly log on the client ledger. As such, requiring Costs on Account from the client is strongly recommended.

Hint: Disbursements can be settled quickly from the Office Account.

Hint: Disbursement exposure does not include sums once settled by the client or sums to be covered by Costs on Account already received.