What is ATE Insurance
After the Event Insurance (ATE) is bespoke insurance cover for the legal costs and expenses involved in litigation should your case fail.
The consumer can obtain ATE Insurance themselves of via LCF. In general, ATE can be used in any type of litigation, and by either a Claimant or a Defendant, although in practice ATE insurance is primarily used by Claimants. The prospect of obtaining the cover is low with respect to unsavvy consumers, thus the consumer can elect to instruct their solicitor/lawyer or LCF on their behalf.
ATE insurance policies should be considered when the case being delivered is risky or when a consumer considers they are unable to meet the costs of the Defendant should the consumer fail to prove the case. Of course, should the risk assessment show that the claim prospects are very good then the consumer may elect to take the risk and save the costs of the ATE cover. In all circumstances, it is for the consumer to choose, it is simply a matter of cost v risk.
Thus, ATE insurance policies normally cover the legal costs which the consumer might have to pay to an opponent in the event the claim is unsuccessful.
The term ‘after the event’ is defined as cover which is bought after the purchase has taken place. Of course, should legal insurance cover already been in place, and it was taken out before the purchase, this is ‘before the event’ insurance and a consumer should check if that cover has been paid for in any policies they have such as, household policies, union memberships, or even professional subscriptions. If the consumer has taken out “before the event” insurance, of course, they can rely on the cover which is extended to them in the policies provided.
Before the event insurance is generally quite reasonably priced however ATE comes at a higher cost as the event has taken place and the consumer is electing to pursue another so the risks are elevated. The cost of the ATE will largely depend on the merits of the case, if the case is very strong the cost will be generally lower, that said it still comes at a higher price than ‘before the event’ insurance.