After The Event (ATE) (HEADING WITHIN BUSINESS INSURANCE)
After the Event (ATE) insurance is a type of legal expenses insurance that covers the cost of legal proceedings after an event has occurred, such as a personal injury, clinical negligence or commercial dispute.
ATE insurance provides cover for legal costs and expenses that are incurred during the course of the legal proceedings, such as court fees, barristers’ fees, and expert witness fees.
The premium for ATE insurance is calculated based on a number of factors, including the level of risk involved in the case, the type of claim, the amount of cover required, and the likelihood of success.
ATE insurance is typically purchased by customers who are pursuing a legal claim, but who are concerned about the financial risks associated with the litigation process. Here are some specific reasons why a customer might choose to buy an ATE policy:
Limited Financial Resources:
ATE insurance can provide financial protection to customers who may not have the resources to fund a legal claim themselves. Legal proceedings can be expensive, and ATE insurance can cover the cost of legal fees and expenses, allowing customers to pursue their claims without incurring significant upfront costs.
Protection Against Adverse Costs:
In the event that a legal claim is unsuccessful, the opposing party may seek to recover their legal costs from the claimant. These costs are known as adverse costs, and can be significant. ATE insurance can provide protection against adverse costs, allowing customers to pursue their claims without the fear of having to pay the opposing party’s legal costs if the claim is unsuccessful.
Higher Chances Of Success:
In some cases, customers may be hesitant to pursue a legal claim due to concerns about the financial risks involved. ATE insurance can provide customers with the peace of mind of knowing that if the claim is unsuccessful, their financial exposure will be limited. This may encourage more customers to pursue legitimate claims, ultimately increasing the chances of success.
Specialist Legal Representation:
In some cases, specialist legal representation may be required to pursue a claim. ATE insurance can cover the cost of engaging specialist legal representation, allowing customers to access the legal expertise that they need to pursue their claim effectively.
In summary, ATE insurance can provide customers with financial protection and peace of mind when pursuing a legal claim. It can cover the cost of legal fees and expenses, protect against adverse costs, increase the chances of success, and enable access to specialist legal representation.
Insurers like cases that are pre-issue or have only just been served, and trial is at least 12 months away. Key red flags for us are the following:
Less than 12 months to trial;
- High likelihood of interlocutory applications (our providers perceive interim claims almost like a loss);
- Boundary disputes;
- Highly reliant on oral testimony;
- Calibre of acting solicitor (especially if the opposing solicitor is a more reputable law firm);
- Submitted for ATE after mediation has failed;
- Cases whereby one if not all the parties are based in the Middle East;
- Cases whereby LOI is less than €100k unless they are relatively straightforward and proportionate;
- ICSID arbitration, unless they are relatively straightforward and there is clear case law in place;
- Family disputes.
Apart from the type of cases listed above, we are happy to consider any type of other claims, but in particular:
- Professional negligence;
- Insolvency (upon the basis it has not been going on for a duration of time);
- Competition cases;
- Follow on actions;