What is After the Event Insurance?

After the Event (ATE) insurance is a type of Legal Expenses Insurance (LEI) which limits your liability for disbursements (expenses) incurred and your opponent’s legal fees.

An insurance policy that is ‘after the event’ means it is purchased after an incident has occurred. The policy normally has a direct bearing on the type of claim you are pursuing.

You don’t have to pay for ATE up front because you only pay if your case is successful, with the premium deducted from any damages you are awarded.

If you case is unsuccessful, you don’t have to pay anything. This is because ATE is classified as a disbursement (expense), itself covered by the insurance policy.

You are not legally required to take out After the Event (ATE) insurance, but it helps to mitigate the financial risks of litigation.

Pros

  • Free if You Lose: if you’re unsuccessful the ATE costs you nothing
  • Not Out of Pocket: as the insurance premium is deducted from the damages you receive, you pay nothing up front and are not out of pocket
  • Protect the Downside: insure yourself against paying the other side’s fees

Cons

  • Expensive: even though you pay nothing up front, the premium for ATE can be expensive if it is purchased late and it will be deducted from your compensation

As specialist litigation solicitors, we can connect you with various alternative funding sources if you instruct us to take your claim forwards. For a FREE consultation, just call 020 7963 8690 or email law@cgnaylor.co.uk.

Written by James Naylor

Partner, CG Naylor LLP.