ATE Products

What is “ATE”?

After the Event (ATE) Litigation Insurance is a relatively new type of insurance that protects a Solicitor’s client (usually the claimant, but it could be the defendant in a legal action) when or after that person or entity becomes aware of the need to litigate to protect their interests. The policy covers the client/Insured against what could prove to be substantial costs that the client/Insured will be liable for should the legal action prove unsuccessful.

First and foremost an ATE Policy covers the Opponent’s Costs, but it invariably also covers the Insured’s Disbursements including the ATE premium and can also (for the right risk) extend to cover the Insured’s Solicitor’s Own Legal Costs (where the Solicitor is not acting under a Conditional Fee Agreement or similar). The standard cover is for Costs incurred after the inception date of the Policy up to conclusion of the legal action, however (subject to negotiation) the Policy may also cover Costs already incurred prior to the Policy being taken out.

What types of ATE Products are there?

ULP catalogues the ATE Products in to three categories, individual cases requiring individual bespoke Policies, Schemes (where a Solicitor is looking to insure a volume of [usually generically similar] cases under a more standard ATE Policy, typically with just one ATE Insurer) and “big risks” which require a different approach. Click on the picture above that reflects what you are seeking.

Current “flavour of the month”

Since 2008, ULP has been - and remains - at the cutting edge in the rapidly developing market of Financial Irregularity (“FI”). As is now public knowledge, the mis-selling of Payment Protection Insurance (“PPI”) Policies has been rife. Less well known and understood, but considerably more significant (and a much greater opportunity for Solicitors), is that a staggering proportion of regulated loan/credit agreements are proving to be in breach of the CCA Regulations and therefore may well be unenforceable. Add to this the fact that the arranging of loans and the selling of PPI Policies have frequently involved undisclosed or secret commissions (breach of agency and/or fiduciary duty), plus the evolving “unfair relationship” test and you have a potent cocktail of wrongdoings by the lenders and brokers. Hundreds of thousands - if not millions - of ordinary people are affected by this.

ULP has received - and continues to receive - more enquiries for FI ATE cover over this period than for any other individual ATE category. We have been successful in arranging FI Schemes for Solicitors, as well as cover for one-off FI cases - including many of the test cases and Appeals that have been run. Contact us for more information.