"Our specialist team independently source competitive insurance policies from global insurance markets in order to reduce the litigation risk to the client."

After the Event Insurance

ATE Insurance (sometimes known as ‘Litigation Insurance’) provides an indemnity for legal costs in the event that the litigation or arbitration is lost. The insurance 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 cover ranging from less than £100,000 to over £20m for an individual case.

Whilst ATE insurance provides an indemnity for costs if the case is unsuccessful, it is rare for a policy to finance the client’s own legal fees on an interim basis (save for interim adverse cost awards). ATE insurance therefore generally requires the client to provide the necessary cash flow to finance the litigation until conclusion, whether by funding the costs privately, reaching an agreement with the legal team regarding deferral of costs or entering into a funding agreement with a third party.

A crucial aspect of this class of insurance is that the premium payable is typically conditional upon a successful outcome in the case. This means that a client has no premium to pay upfront and no premium to pay at all if the case is unsuccessful.

Our Advice & Support

At TheJudge we broker ATE 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 ATE 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 ATE Insurance or Third Party Funding.

The following are areas that we are typically engaged in:

This is a non exhaustive list. Please contact us to discuss your specific case or requirements

Premium Recoverability

TheJudge is widely considered to be the leading independent expert when it comes to After the Event insurance. In addition to sourcing and securing competitive policies for our clients, we also provide full premium recoverability support (for cases litigated in the UK) in the event of a challenge to the reasonableness of the ATE premium by the paying party.

Recoverability support may take the form of assisting with the drafting of Replies to any Points of Dispute, providing Witness Statements or expert reports, as well as giving evidence at formal costs assessment hearings if appropriate.

Please note that our recoverability expertise is only available to a client that has utilised our services at the outset when securing the insurance. Only in exceptional cases will we agree to consider an instruction where we were not the placing broker. If you have an enquiry relating to premium recovery, please contact us and we will be happy to assist you.

Q and A

How does the ATE Premium Work?

Although ATE premiums vary significantly, there are certain common features:

The premiums brokered through TheJudge are generally deferred and contingent upon success, meaning that the premium is only payable if and when the dispute is resolved in the client’s favour.
TheJudge is typically able to negotiate premiums which increase the closer the case gets to Trial or which are discounted significantly if the case settles early.
For litigation pursued in England and Wales, the ATE premium is a recoverable cost under s.29 Access to Justice Act 1999, subject to a test of reasonableness.

Is ATE only relevant to financially distressed litigants?

ATE is relevant to any party involved in or contemplating litigation. Whilst it can be used to level the playing fields between unevenly matched opponents, many of the world’s largest companies also regularly use ATE to hedge their legal cost exposure and bring increased certainty to the legal spend, especially at a time when legal budgets are under pressure.

Does the instructed solicitor need to act on a CFA in order to secure insurance for the client?

There is no requirement to act on a conditional/contingency fee basis.

What is the role of TheJudge?

As an independent broker, it is our role to work for the client in sourcing and negotiating suitable insurance. To do this, we identify and approach a number of potentially suitable markets. Our aim is to obtain several offers where possible, which is important to increase the chances of securing terms, whilst ensuring that any premium incurred is competitive.

For cases being litigated in England & Wales, our market search is vital to provide evidence of market comparables, should the reasonableness of the premium be challenged by the opponent at a costs assessment. We are market leaders in providing premium recoverability support and have had our evidence accepted at numerous costs assessments, including SCCO hearings.