ATE (After the Event) Legal Expenses Insurance
You will need after the event insurance for any personal injury claim that we work on for you. This includes:
After the event (ATE) legal expense insurance is taken out after an accident has happened to cover you for any legal costs you may incur when you pursue a compensation claim.
This is how law firms can offer a No Win No Fee service as the insurance policy covers the costs if you lost the case.
ATE is usually taken out by people who wish to make a compensation claim, but who do not have before the event insurance (BTE).
It is also sometimes taken out by people who do have a BTE policy, but one that doesn’t cover all or some of the potential costs of the claim.
The purpose of after the event insurance is to make sure that if the claimant loses their case, their ATE insurance provider will pick up the legal costs, including lawyers, solicitors, barristers, expert witnesses, court fines and fees.
When a claimant does not win their claim, ATE also covers any litigation costs incurred by the defence, meaning they will not suffer any financial losses as a result of making an unsuccessful claim.
If you do not have sufficient before the event insurance, we ask that you purchase ATE (we will handle this on your behalf). This means that in the unlikely event that we do not win their case, our fees will be covered by the policy.
This insurance allows us to provide a No Win No Fee service so that if your claim is not successful, you won’t have to pay us a penny.
How Much Does After The Event Insurance Cost?
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.