What is the relationship between litigation funding and ATE insurance?
Litigation funding and after the event insurance are not mutually exclusive and are complimentary. In cases where a litigation funding agreement is entered into between the claimant and the funder, the claimant will often also have entered into an after the event insurance policy with an insurer… Read More A defendant who unsuccessfully defends a claim against a claimant that has the benefit of an after the event insurance policy will, in addition to the value of the claim, usually be held liable to pay the cost of the insurance premium. However, a defendant who unsuccessfully defends a claim against a claimant that is being funded by a funder will not in addition be liable to pay the cut of the winnings that the funder receives. This is a fundamental difference between litigation funding and after the event insurance, which in part (together with the fact that litigation funding is not cheap) explains why many more claimants obtain after the event insurance policies than litigation fu
