After-The-Event (ATE) Insurance: What is it?

  • May 08, 2019
  • Nick Robson, VP/General Counsel of The Judge

In short, an ATE insurance policy offers a client protection from their exposure to disbursements and adverse costs resulting from a failed action. It does not fund such costs, however may be used as a form of security for finance if needed.

Typically, an ATE insurance policy is obtained whilst acting on a contingency fee retainer, giving the client true ‘no win no fee’ protection; allowing the legal representative to mitigate the client’s remaining exposure to costs (own disbursements and adverse costs) should the action be unsuccessful. However, a contingency fee agreement is not a requirement.