What is After-the-Event (ATE) Insurance?
ATE Insurance is a form of legal expenses insurance obtained by the claimant ‘after the event’ in time that brought about his entitlement to bring the claim. The insurance policy covers the claimant’s liability to pay his own disbursements and his defendant’s costs in the event that his case is unsuccessful. It, therefore, potentially provides a degree of reassurance to a claimant because it reduces the overall costs risks associated with the claim. The premium payment terms of many ATE insurance policies are unusual because the premium is often not payable when the insurance is taken out, but instead at the conclusion of the case. This will only happen if the claimant’s case is successful, whereupon the defendant becomes liable to pay the premium. If the claimant is unsuccessful, no premium is payable.
