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Before The Event (BTE) Legal Expenses Insurance

Before the Event legal expenses insurance, sometimes referred to as pre-existing legal expenses or BTE insurance, is a form of insurance that, like most traditional insurance, is taken out prior to the policyholder being aware of any prospective claim or dispute.

Accordingly, unlike ATE insurance, BTE insurance only applies where the policyholder is not aware of any prospective litigation that they may become embroiled in. BTE insurance exists for both commercial and non-commercial clients.

Commercial BTE insurance

Commercial BTE insurance can vary significantly with regards to the scope of cover provided. Policies exist for a simple “off the shelf” low cost solution through to highly bespoke products, e.g. specifically tailored intellectual property legal expenses insurance through to marine legal expenses policies.

Please contact .(JavaScript must be enabled to view this email address) to discuss your particular BTE insurance needs.

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.