After the Event Insurance
After the Event (ATE) legal expenses insurance can be purchased by a claimant in a legal action to cover exposure to opponent’s legal costs. ATE insurance is only taken out after the event has taken place resulting in the actual or potential legal dispute. If the legal dispute is lost, then the other parties costs together with certain expenses (otherwise known as disbursements) can be met by the insurance.
Examples of case types we can consider
- Shareholder / Contract / Partnership Disputes
- Professional Negligence
- Financial Mis-selling
- Contentious Trusts / Probate
- International Arbitration
- Clinical Negligence
- Personal Injury
There is not a typical client, it is very much about the claimant’s attitude to the litigation risk. It could be an individual or group of individuals in a David v Goliath scenario, a finance director looking to hedge their legal spend or an insolvency practitioner looking to pursue claims on behalf of an insolvent company. ATE Insurance levels the playing field and demonstrates to the defendant that the insured has the ability to advance it's claim.
Benefits & Features
ATE can cover a variety of disputes, usually where the “win” in the litigation is an award of damages. Premiums typically range from 20% to 40% of the sum insured and are rebated so that the premium is less expensive if the case concludes early. The premium can be paid in full at policy inception or insurers may offer a contingent premium structure (i.e. the premium is only payable in the event of a successful outcome).
Insurers are looking for cases where the prospects of success and the prospects of being able to make a successful recovery are good, in percentage terms at least 60%. It is also important that the case is proposed at an appropriate stage in the litigation, typically around the point at which legal proceedings are issued.
Deed of Indemnity
We are able to underwrite a deed of indemnity, should the ATE Insurance policy not be accepted as security for costs or caution. Any deed of indemnity provided is in addition to the ATE insurance policy and would incur an extra premium.
We have excellent relationships with a number of key UK based third party litigation funders, we can perform the role of an introducer for law firms and their clients who are looking to obtain litigation funding. Most third party funders will require a claimant to have the benefit of suitable ATE insurance.
Composite Legal Expenses providing a quotation for ATE insurance could expedite the litigation funding application process and increase your chances of obtaining an offer of funding.