After the Event Insurance
After the Event Insurance, also known as ATE insurance, provides an indemnity for legal costs in the event that a client’s litigation or arbitration is lost. An After the Event (ATE) insurance policy typically covers the potential liability for the other side’s costs (adverse costs), as well as some or all of the client’s own legal fees.
There is no cap to the level of cover potentially available for a given case. TheJudge can secure ATE insurance cover ranging from less than £100,000 to over £20m for an individual case.
Key aspects of After the Event insurance are:
- The premium payable is typically conditional upon a successful outcome in the case
- The premium payable can often be deferred until the conclusion of the case
This means that a client has no premium to pay upfront and no premium to pay at all in the event that their case is unsuccessful.
ATE Insurance Coverage Options
After the Event insurance policies can be tailored to the requirements of the client.
Cover can typically be arranged for:
- Adverse costs i.e. the costs incurred by the opponent in the litigation
- The client’s own disbursements (or hard costs) such as expert’s fees and counsel’s fees
- Own side solicitors’ fees
Where a client finances their own disbursements or solicitor’s fees on interim basis yet has cover protection under their After the Event insurance, should the case be unsuccessful they would be reimbursed for the sums they’ve incurred in accordance with the policy.
Furthermore, because premiums are typically contingent upon success the client would not have any liability to pay an ATE premium in these circumstances i.e. the ATE insurer pays a claim and does not receive a premium.
Minimising the Financial Risks of Litigation for your Client
An After the Event insurance policy will provide your client with an indemnity for costs if the case is unsuccessful, however it is rare for a policy of this sort to finance the client’s own legal fees on an interim basis (save for interim adverse cost awards). Therefore, your client would need to be able to provide sufficient cash flow to finance the litigation throughout.
Should the litigant require cash flow support, we recommend that any After the Event insurance policy should be considered alongside third party funding where a funder would provide the necessary funds to finance the case in exchange for a success fee in the event that the case is successful.
This further reduces the financial risks involved in litigation for your client. Speak to a broker at TheJudge to find out more about minimising the financial risks of litigation for your client. Call us on 0845 257 6058 today.
After the Event Insurance from TheJudge
Our team of experienced brokers have unrivalled expertise in this field and can create a bespoke After the Event insurance solution, with or without third party funding, to meet the specific needs of your case.
Our close working relationships with A-rated After the Event insurance providers means that we can approach multiple insurers simultaneously to secure the best terms for your case. Working with a broker ensures that you will swiftly receive the most competitive quotes together with all the independent advice and guidance you need. Contact TheJudge today to find out more about ATE Insurance options for your case.
Our Advice & Support
At TheJudge we broker After the Event Insurance and Third Party Funding for the full range of civil and commercial disputes. Whether a client wishes to transfer £10,000 or £20m+ of legal cost risk we aim to ensure our clients are presented with competitive terms, every time. We work with leading insurers and funders from around the globe in order to ensure that our clients always have independent choice and access to the right markets for their risks. Whether for domestic or international disputes, we are continuously adding new markets to our broking service.
Areas of Law
At TheJudge we broker After the Event Insurance and Third Party Funding for the full range of commercial disputes (see the list below for some specific areas). Whether a client wishes to transfer £10,000 of legal cost risk or £30m, we work with the leading markets to ensure our clients are presented with competitive terms, every time.
Please note there is no requirement for law firms to be instructed on a CFA or alternative fee agreement to secure After the Event Insurance or Third Party Funding.
The following are areas that we are typically engaged in:
- Arbitration Proceedings
- Business Recovery & Insolvency
- Clinical Negligence Litigation
- Class Action & Group Litigation
- Contentious Trusts and Probate
- Construction Disputes
- Fraud & Financial Regulatory Litigation
- Intellectual Property Disputes
- Libel & Defamation
- Personal Injury Litigation
- Property & Real Estate Disputes
- Trusts & Probate Disputes
- Banking & Finance Litigation
- Civil Contract Litigation
- Contentious Trusts and Probate
- Competition Law & Litigation
- Commercial Contract Disputes
- Employment Litigation
- Insurance & Reinsurance Litigation
- International Arbitration
- Pension Disputes & Litigation
- Professional Negligence Disputes
- Software Licensing IT Disputes
- Other Litigation Areas
This is a non exhaustive list. Please contact us to discuss your specific case or requirements
With effect from 1st April 2013, and following implementation of the Legal Aid, Sentencing and Punishment of Offenders Act (‘LASPO Act’), ATE insurance premiums are no longer recoverable from the losing party, with regards to the majority of areas of law. To find out what this means for your firm, or to understand how the litigation funding and insurance markets will be affected by this change, contact us to organise a call, meeting or free CPD accredited training session with one of our experienced brokers.
Where TheJudge has brokered an ATE insurance policy prior to 1st April 2013 or in relation to an area of law where recoverability of litigation insurance premiums remains, and recoverability assistance is required, we are widely considered to be the leading expert. Recoverability support may take the form of assisting with the drafting of Replies to Points of Dispute, providing Witness Statements or expert reports, as well as giving evidence at formal cost hearings if appropriate.
If you require recoverability support in respect of an ATE insurance policy brokered by TheJudge, please contact us.