What is After the Event (ATE) insurance?
After the event insurance is a cover that can be taken out to cover the expenses of legal fees following a personal injury. This type of insurance can be invaluable if a case is lost, as it ensures that potentially expensive legal fees are paid by the insurance policy, and not from your own pocket.
After the event insurance is purchased following an accident or incident and allows claimants to proceed with making a claim for compensation without worrying that they might lose and be at a financial loss for pursuing their case. Claimants who lose their case may be liable to pay the defendant’s costs as well as their own, which can be a very costly undertaking. With after the event insurance, the legal fees of both sides would be covered.
The majority of ATE policies are taken out in conjunction with a Conditional Fee Agreement (CFA) which is an arrangement that shares the financial risk or proceeding with a claim. The CFA (also known as no win no fee) means that a claimant only pays the solicitor’s fees as and when they win the case and their compensation is paid. If the case is not won, the solicitor is not paid. With an ATE policy, the reimbursement of any costs incurred by the solicitor through the claim would be paid whether the case is won or lost. Without this cover, the claimant would be personally responsible for making this payment even if they lost their litigation.
ATE insurance is available from many UK insurers, and the cost of the cover depends on the details of each case. The size of the case and risk taken by the insurer will determine the cost of cover. When making an accident claim, your solicitor would explain the options available to you and recommend the best course of action for your specific circumstances.