After the event insurance is cover purchased after a specific event. The more common use of after the event insurance cover relates to personal injury claims. It offers a means of limiting any potential exposure to disbursements or additional legal fees and when used correctly can be extremely helpful. This type of insurance cover is perfect for personal injury claims and is often used in conjunction with No Win No Fee arrangements which are said to account for around 75% of personal injury claims.
After the event (also known as ATE) insurance is an arrangement between the claimant and an insurance company which will cover any additional costs above and beyond the “No Win No Fee” arrangement with a solicitor. We will make you fully aware of the terms of a No Win No Fee arrangement and the potential requirement for ATE insurance to limit any financial liabilities going forward. However, a number of rogue operators in the industry have been heavily censored by the Legal Ombudsman with many forced to cover tens of thousands of pounds in disbursements as well as compensation to clients.
Traditionally, ATE insurance will be acquired at the same time as a No Win No Fee arrangement is agreed. In many cases these two particular arrangements go hand-in-hand and while many people might question the need for such cover, if the case is watertight, it can be a very useful safety net.
Specific ATE insurance premiums will reflect the underlying personal injury claim, chances of success and potential legal fees and disbursements. If the underlying case is relatively strong and ATE insurance cover is acquired at an early stage then the premium is likely to be relatively low. In some cases it may be required to arrange ATE insurance cover further down the line, perhaps when the outcome is a little less certain, although this could lead to an increase in the cost of the cover.
Aside from the insurance benefits of ATE cover it is worth noting that no premium payment is expected upfront. You will only pay the relevant premium if you win the case and this will be paid out of any compensation you receive. In the event that you lose the case, and all terms and conditions of the cover have been respected, you will pay nothing. This type of “self-insuring” policy obviously depends upon very strong cases traditionally with a minimum 60% chance of success. If the case is successful then the insurance premium is paid out of compensation.