ATE Insurance and Security for Costs - Prosperity Brokers
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security for costs - Prosperity Insurance Brokers

ATE Insurance and Security for Costs

If you are soon to be involved in a court case, whether as a claimant or a defendant, you may have heard of the term “security for costs”. As one of the many snippets of legal jargon, you’ll be coming into contact with, it may be easy to let it fall by the wayside and think no further about it. However, depending on your case and the status of your opposition, it may very well be worth looking into.

What is Security for Costs?

Security for costs is something that one side of the case (say the defendant) can apply for the other (the claimant) to provide. If it is felt that the claimant will not be able to pay any costs that have been awarded to them should they lose the case, and that the defendant will not be able to recover any costs from them once the case is closed, it is possible for the defendant to request a court order that states the claimant must pay an amount – or provide some other form of security – to the court within a period stated and agreed to by court officials. This request must be made as early as possible within the proceedings to ensure it is successful. Claimants can also seek security for costs from a defendant if they make any counterclaim.

It has recently been ruled that security for costs can be covered by After The Event Insurance.

What is After the Event (ATE) Insurance?

After The Event Insurance is a type of cover by which either claimants or defendants in court cases can recover the costs they have been required to pay as part of the legal process. Similarly to any application for security for costs, this type of policy is usually required to be put in place as early as possible within proceedings. This is because any expenses that have already been accrued may not be recoverable in retrospect through a policy that was purchased late in the day.

How Can After The Event Insurance be Used as Security for Costs?

Allowing this type of cover to be used in this manner means that claimants with little capital at their disposal can still afford to fight their case. Of course, there are particular conditions under which this approach can be executed – for example, the claimant would need to have their After The Event insurance fully confirmed before a court can accept this method of providing security. It was unclear for quite a time as to whether After The Event Insurance was sufficient to cover this particular cost in all cases, the argument being that it was possible, under specific circumstances, for an insurer to cancel an After The Event policy before the case was completed. This would leave the claimant without the security for costs they had previously arranged and therefore prevent the defendant from being reimbursed in the long run. However, the official ruling was that cancelling a policy would be detrimental to an insurer’s interests and that it would be likely to result in “bad press” for the firm in question, so the likelihood of this hypothetical situation becoming a reality was negligibly low.

How Can I Acquire After the Event Insurance to Use as Security for Costs?

Many legal advisors and representatives offer After The Event Insurance as a part of their services. You can also approach any reputable insurance broker for this purpose. It’s important to inform them that you intend to use this cover as security for costs, so that they can assist you in the process.

Does Prosperity Insurance Brokers Offer After The Event Insurance as Security for Costs?

Yes. The team at Prosperity Insurance Brokers will be happy to discuss After the Event Insurance and further explore its use as security for costs with you. All you need to do is call them today on 01481 254954, send an email via or fill in their useful contact form which can be found here. Prosperity Insurance Brokerse also specialises in cover and representation for personal injury, road traffic accidents, public liability, employer liability, holiday sickness, industrial disease, clinical negligence, noise induced hearing loss and abuse, and their specialist lawyers have in depth experience of advising on exceptionally complex and sensitive matters. It’s always possible to tailor the perfect bespoke policy to perfectly meet the needs of you or your company, so get in touch today and discover exactly what they can do for you.

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