What is After the Event insurance?
ATE insurance protects you against the cost of losing a legal claim. It is taken out after the dispute has arisen, which is where the name comes from.
How ATE insurance works
In civil litigation in England and Wales, the losing party is usually ordered to pay a large part of the winning party's legal costs. For a claimant, that means a lost case can cost far more than their own fees.
An ATE policy is designed to pay those costs if the claim is unsuccessful. It can also cover the claimant's own disbursements, such as expert reports and court fees, which are often needed long before the case is resolved.
ATE insurance is commonly used alongside a conditional fee agreement (no win no fee) or a damages based agreement, but it can also be used where the client is paying their solicitor privately.
When to take out a policy
The earlier cover is arranged, the more of the case it can protect. Many insurers will consider a claim before proceedings are issued, once the solicitor has assessed the merits. Cover can still be available later, including after proceedings have started or ahead of trial, although the premium may reflect the later stage.
The premium
Every premium is priced on the individual case. Insurers look at the prospects of success, the value of the claim, the likely costs on both sides and the stage the case has reached.
Many policies allow the premium to be deferred until the end of the case and paid from damages. Some are contingent, so no premium is payable if the case is lost. Others are staged, rising as the case moves towards trial.
For policies taken out since April 2013, ATE premiums in England and Wales are generally not recoverable from the losing opponent. A limited exception applies to the part of the premium covering expert reports on liability and causation in clinical negligence claims.
Usually covered
- Opponent's legal costs if the claim is lost
- Expert and medical report fees
- Court and issue fees
- Barrister's fees
- Other agreed disbursements
Usually not covered
- Your own solicitor's base costs (often handled under a no win no fee agreement)
- Costs caused by unreasonable conduct
- Costs above the limit of indemnity
- Damages you are ordered to pay
Talk it through
Not sure whether your case is suitable? Our team can tell you quickly.
Call 0161 706 0195Making a strong application
Insurers decide on cover based on the information provided. A well prepared application is the quickest route to terms.
- A summary of the claim and the key facts
- The solicitor's view of the prospects of success
- The value of the claim and the remedy sought
- An estimate of costs on both sides
- Any counsel's opinion or expert evidence obtained so far
- Details of any settlement offers made
ATE insurance FAQs
What is After the Event insurance?
After the Event (ATE) insurance is legal expenses insurance taken out after a legal dispute has arisen. If the case is lost, the policy can pay the opponent's legal costs and your own disbursements, such as expert fees, court fees and barrister's fees, up to the limit of indemnity.
When should ATE insurance be taken out?
As early as possible. Many insurers will consider a case before proceedings are issued, and cover arranged early usually protects against more of the costs that build up during the claim. Cover can still be available later in a case, including after proceedings have started.
How much does ATE insurance cost?
Each premium is priced on the individual case, taking into account the prospects of success, the value of the claim and the level of cover needed. Many policies allow the premium to be deferred until the end of the case, and some are contingent, meaning no premium is payable if the case is lost.
Can I recover the premium from my opponent?
In England and Wales, ATE premiums for policies taken out since April 2013 are generally not recoverable from the losing party. A limited exception applies to the part of the premium covering expert reports on liability and causation in clinical negligence claims.
Do I need a solicitor to apply?
Most ATE policies are arranged through the solicitor running the case, as insurers will want to see their assessment of the claim. If you do not yet have a solicitor, contact us and we will explain what is needed.
Does ATE insurance work with no win no fee agreements?
Yes. ATE insurance is often arranged alongside a conditional fee agreement or damages based agreement, so that the client is protected against the costs a no win no fee agreement does not cover.
Ready to talk about your case?
Tell us about the claim and we will come back to you with the options available.