After The Event (ATE) Insurance

By Edward Smith on

When considering whether to embark on a litigation claim a claimant should always weigh up the pros and cons of doing so. Questions such as what impact will this litigation have on my business, or what will the litigation cost me will often bear heavily on the decision about whether or not a business or an individual chooses to pursue a claim.

One concern that many litigants have is the possibility that they will be ordered by the court to pay the costs of the other side during the course of (or at the end of) an unsuccessful claim. One way to ensure that this eventuality is avoided is to take out an insurance policy to protect you as a litigant from such an order.

What is ATE Insurance?

After the Event Insurance (commonly known as ATE insurance) is an insurance policy taken out after a dispute has arisen to protect against the risk of having to pay the opponent’s legal costs if you lose.

The policy can often be extended to cover some or all of your disbursements, such as court fees, counsel’s fees and expert’s fees.

There are various tactical advantages in obtaining ATE insurance and in most cases the policies are self-insuring, with premiums only payable in the event that the case is successful. Typically the payment of the premium is deferred until the end of the case and if the claim loses the insurer will usually indemnify the policy holder for the insured risks.

If you have any questions about a dispute, a litigation claim or about ATE insurance in general, contact Levi Solicitors in Leeds, Bradford, Wakefield, Manchester and London on 0113 244 9931.