After the Event Insurance - Prosperity Insurance Brokers
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ATE Insurance – Frequently Asked Questions

In this frequently asked questions section we have tried to answer the most common questions that arise.  If we haven’t dealt with your question or you want to discuss any aspect of ATE Insurance in greater detail Prosperity has the knowledge, expertise and experience to help you.  Simply contact us on 0800 524 4235 or email us on info@prosperitybrokers.co.uk

What is ATE (After the Event) Insurance?

In simple terms ATE Insurance is an insurance policy that protects and covers a Client who wants to pursue a claim against the risk of having to pay their opponents legal costs and disbursements if the case is unsuccessful.  As the legal system has changed and more and more solicitors are prepared to take cases on a “no win, no fee” basis ATE Insurance has developed to allow people and companies to pursue claims without the fear of facing a large legal bill if they lose their case.

Simply put After the Event Insurance can take the risks out of litigation. You can read the full explanation of what is ATE insurance here.


What types of ATE Insurance do Prosperity offer?

We can consider any type of legal action.  See our standard range of policies above.   If you are looking for something out of the ordinary or for a specific case please do not hesitate to contact us using the enquiry form below.

When is ATE Insurance needed?

We would strongly recommend that anyone who is involved in litigation to take out an ATE insurance policy to protect against adverse costs which may be incurred if the case is unsuccessful. It is not a legal obligation, but the protection that After the Event Insurance offers is substantial. Pursuing or defending oneself against a claim always comes with an element of risk, and, should you lose your case, being uninsured can prove disastrous. Legal cases can also be extremely stressful, so knowing that your possible expenses are covered can prove a huge relief and a weight off your mind throughout the proceedings.

When should ATE Insurance be taken out?

The very best time to obtain After the Event insurance is right at the start of any claim, before any significant legal fees have been incurred.  Unless the ATE insurer agrees specially no costs or disbursements will be covered until the policy is taken out.  As we said earlier the premium is not payable until the end of the case and only then if the case is successful so there is no reason that the policy can’t be taken out as soon as possible.  The other point to bear in mind is that delaying taking out ATE cover may mean that further along the line the premium could be higher or in some cases not even available.

Should a solicitor advise a Client about ATE?

It is not for Prosperity to tell a solicitor what they should and should not do but we believe the answer is yes.  The following is a quote from the Solicitors Regulation Authority “You must give your client the best information possible about the likely overall cost of a matter both at the outset and, when appropriate, as the matter progresses. In particular you must: discuss with the client how the client will pay, in particular: whether the client’s own costs are covered by insurance; and discuss with the client whether their liability for another party’s costs may be covered by existing insurance or whether specially purchased insurance may be obtained” and we would recommend that any solicitor should check the SRA Code of Conduct

Who Pays the Premium?

Until March 2013 the premium for an ATE policy was recoverable from the Defendant if the case was won but changes to this rule were incorporated in a major piece of legislation that abolished this recoverability and this meant that the Claimant had to pay the premium.  The good news is that the premium is only payable if the Client wins their case.

 

If the case is lost then the premium is self-insured and the premium is waived.  In effect this means that taking out ATE Insurance is a really obvious and straightforward way to protect both Client and Solicitor.

When is the Premium Paid?

The premium for an After the Event Insurance is payable when the case is settled and then it is only payable if the case is successful.

Do you offer any Litigation Funding options

Whilst Prosperity does not offer litigation funding itself we do have relationships with a number of specialist litigation funding companies who can offer a range of funding options whether for an individual case or for a wider “basket” of claims.  If you require any form of litigation funding please contact us and let us have details of the level of funding required, the purpose of the funding (e.g. disbursements, disbursements and own solicitors costs) and when it will be required.

It should be understood that almost every funder will require a supporting ATE insurance policy(s).

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