What is the difference between BTE and ATE insurance in an injury claim?

When making an injury claim, understanding the types of legal insurance available can help manage the financial risks involved.

Two main types, Before the Event (BTE) and After the Event (ATE) insurance, offer different protections depending on whether the cover is arranged before or after an incident occurs. Here’s a look at how each type works, and which may apply to your claim.

What is ATE (After the Event) insurance?

After the Event (ATE) insurance is a type of legal expenses cover taken out after an incident leading to a personal injury claim, often part of a no win, no fee agreement. ATE insurance protects claimants from financial risks if they lose the case, covering the defendant’s legal fees, disbursements, and certain personal expenses such as medical reports or barristers' fees.

Together with a Conditional Fee Agreement (CFA) - the legal term for a 'no win, no fee agreement' - ATE insurance gives you complete peace of mind that whatever the outcome of our claim, you will not be out of pocket.

Limitations of ATE insurance

ATE insurance may not cover you if:

• Evidence is fabricated or the claim lacks merit.
• A reasonable settlement offer is refused, and the final award is no better.

Your solicitor arranges ATE insurance at the start of a claim, so costs incurred before this point aren’t covered. ATE policies are 'self-insuring', meaning you only pay the premium if you win, deducted from your compensation.

When do I pay for ATE insurance?

Although your solicitor will arrange ATE insurance for you at the start of your claim, you only pay for the ATE policy at the end of the claims process, and only if you win. If your claim is not successful, you pay nothing for the policy.

What is BTE (Before the Event) insurance?

Before the Event (BTE) insurance is legal expenses insurance arranged before any incident occurs, often included in home, travel, or car insurance policies. BTE insurance covers legal fees if an accident or dispute arises, and may apply to personal injury, employment, or medical negligence claims.

What does BTE insurance cover in an injury claim?

BTE typically covers:

• Legal fees, including solicitors, barristers, and court costs
• Expert witnesses
• Legal expenses awarded to the opposing side

BTE policies vary; some may not cover all legal fees or holiday-related claims, and generally won’t cover compensation payments. BTE insurance is usually paid annually and is obtained through standard insurance policies or certain memberships, like trade unions or employers.

What happens if you don't have BTE?

If you do not have BTE insurance when an accident occurs, it cannot be purchased to cover past events. Most personal injury claims proceed on a no win, no fee basis, protected by ATE insurance. In such cases, you won’t pay the ATE premium upfront, and if you lose, no costs apply.

See also:

Will dealing directly with insurers speed up my injury claim?

How long does an insurer take to settle an injury claim?

Do I have to use my insurance company's injury solicitor?

Author:
Chris Salmon, Director

About the author

Chris Salmon is a co-founder and Director of Quittance Injury Claims. Chris has played key roles in the shaping and scaling of a number of legal services brands and is a regular commentator in the legal press.