After the Event (ATE) insurance
After the event insurance can be used to cover some or all of the legal expenses associated with a personal injury claim. This is particularly important if the claim is lost.
After the event insurance is a type of legal expenses insurance taken out after the incident that gave rise to the personal injury claim has taken place. It protects claimants against the financial risks of making a legal claim. Without after the event (ATE) insurance, you could be liable to pay your opponent's costs as well as your own expenses, such as medical reports and barrister fees, if you did not win your claim.
Who needs ATE insurance?
ATE insurance is designed to protect personal injury claimants against the financial risk of making (and losing) a legal claim. The insurance will usually cover your opponent's costs if the Court orders you to pay these and may cover the expenses (disbursements) you have incurred along the way, such as travel expenses and the cost of obtaining medical reports.
Most personal injury claimants use ATE insurance in conjunction with a Conditional Fee Agreement. A Conditional Fee Agreement (CFA) is a financial risk-sharing arrangement whereby you only pay solicitor's fees if your litigation is won and you receive personal injury compensation. You do not have to pay a penny in legal costs if you lose your claim.
You still will have to reimburse any disbursements incurred by your solicitor during the case. However, an ATE policy usually covers those expenses. As an ATE policy also pays your opponent's legal fees if you are unsuccessful, the combination of ATE insurance and a CFA gives absolute peace of mind that you won't be exposed to any unnecessary financial risk.
How much does ATE insurance cost?
The cost of ATE insurance varies from case to case, but it is usually based on two factors:
- the amount of cover you require
- the merits of your case - the higher the risk, the higher the premium
The fundamental benefit of ATE insurance is that you do not have to pay any money up front. The premium is generally only payable at the end of the case, out of the compensation you receive. In addition, you only pay the premium if you win. If you lose your case, you pay nothing. This is described as a 'self-insuring' policy.
How do I obtain ATE insurance?
There are a number of reputable ATE insurers in the market. Your legal team will assist you with your application when you first contact them with a view to making a claim.
You will need to show the insurers that you have a good case. Both your solicitor and the insurance company will carry out a risk assessment to determine whether you have a reasonable prospect of winning your claim. In most cases, it will be difficult to obtain ATE insurance if your chances of success are lower than 60%.
Quittance's approach to ATE insurance costs
We believe that claimants deserve fairly-priced ATE insurance. If you are thinking of pursuing a personal injury claim, Quittance can help. To learn about our No Win, No Fee approach, call us on 0800 612 7456 or contact us online today.