What risk does an ATE insurance policy insure against?
Unlike litigation funders, ATE insurers do not provide cash flow or funding for a claimant’s ongoing solicitors’ bills and disbursements associated with pursuing the claim. Accordingly, even where ATE insurance is in place, the claimant still has to pay interim legal bills as the claim progresses… Read More ATE Insurance insures the claimant against the risk that he might be ordered to pay the defendant’s costs and disbursements if the claimant’s claim is ultimately unsuccessful. In such circumstances, subject to the terms of the policy, the ATE insurer usually becomes liable to pay (on behalf of the claimant) both of the following: • The defendant’s legal costs and disbursements; and • The claimant’s own disbursements In rare cases, the ATE Insurance market might also consider providing cover for a claimant’s own solicitors’ fees.
