Frequently Asked Questions about After the Event Insurance

What is After the Event (ATE) Insurance?: 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 civil 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.
What does an ATE Insurance Policy cover?: Each case is different, both as regards what the client and their Solicitors want cover for and what the Insurers are prepared to offer cover against, but as a general rule the majority of policies we arrange cover the Opponent’s Legal Costs, the client’s Own Side’s Disbursements and the cost of the ATE premium if the case loses.
How does ATE Insurance work?: As a Broker, we work with Solicitors acting on behalf of their clients to obtain ATE Insurance cover. We ask Solicitors to complete just the one Proposal Form and we help ensure that all the ‛salient’ information has been provided to support the application before submitting it to various appropriate Insurers. We then collate the responses received from the Insurers and provide the Solicitor with a comprehensive but easy to follow letter setting out any and all Quotations offered.
What is ‘salient’ information when seeking ATE Insurance cover?: In addition to the Proposal Form, the Solicitor should endeavour to provide a reasonably detailed Case Summary, any Medical or Expert Reports that have been obtained, the Opponent’s Defence or ‛stance’, relevant correspondence with the Opponent, (if appropriate) any Witness Statements that have been collected and (if appropriate) Counsel’s Opinion. If some of those are not available, approach us with what you have.
When is the best time to get ATE cover?: Our recommendation is that you approach us as soon you and your client have explored the various funding options available and decided that an ATE policy is or may be the best option. As a minimum, the ATE Insurers usually expect to see some form of response from the Opponent so that they know what they are up against and that litigation is a real possibility; also that some supportive evidence has been gathered.
How much will an ATE Insurance Policy cost?: We get asked this question more frequently than any other, but if the premium is deferred and insured and wholly recoverable (after all if you use us we will have researched most if not all of the available Insurers) the question is surely irrelevant? And that is the position with the majority of one-off cases we get approached on. Each case is underwritten on its merits by the various Insurers we approach, so we can do no more than give you an intelligent ballpark guess - but why does it matter what it costs?
What is meant by ‘the ATE Insurance premium is deferred and insured’?: This is when the premium is not payable until the case has concluded and insured (written off or deemed not to be due) if the case is unsuccessful. Put another way, it is only payable if the case is successful and in such a scenario it should be recoverable from the losing Opponent.
Is the ATE Insurance premium always recoverable?: It should be, unless there was clearly an alternative/better form of funding available to the client which would have cost the losing Opponent less or nothing, or unless the premium is deemed wholly unreasonable. We will help you demonstrate that you have shopped around the market and not just taken the first offer made or only enquired of one Insurer. We will provide you with a formal Quotation letter which can be shown to the Opponent if they disagree with the premium at the conclusion of the case; the letter details which Insurers we approached and their responses.
How do you differ from the other ATE Insurance Providers we could try?: We are specialist After the Event Litigation Insurance Brokers, not a funder, nor an underwriting agent, coverholder, tied agent, intermediary only dealing with one or two Insurers, nor an Insurer. We are independent, working for you and your clients and on your side. We are virtually unique in being tied to no one and in dealing with most if not all of the ATE Insurers.
Why should we use ULP?: In addition to what is stated as the answer to the question immediately above, we shop around, we help to improve proposals/submissions, we go the extra mile, we leave no stone unturned, we give you choices and we provide peace of mind regarding recoverability. Some Insurers will not deal direct with Solicitors on certain types of cases or prefer to be approached by a Broker. Our two Directors are qualified Insurance Brokers with over 60 years insurance broking experience behind them. This culture is continually being passed down to all ULP staff.
Do you charge for your services?: Our general rule is to charge a £100 application fee for a one-off ATE risk, payable by the Solicitor. We are always negotiable on the fee and prepared to waive that charge for regular users of our services. We do not charge for arranging Schemes or Facilities. Other than that, we are paid by the Insurer, so rely on having obtained at least one Quotation which has been accepted by your client. Some Insurers will not pay us a brokerage if the case goes on cover but loses.
Why should we pay a fee to you?: Our Proposal Form is accepted by all the Insurers we approach, so you will be saving a lot of your own time by coming to us. We normally spend many hours working on a case whether or not we manage to get a Quotation and whether or not your client decides to take up any offers we put forward - in either of those scenarios we earn nothing else. If you were to do the equivalent work yourselves, you might not know where to go and you would take much longer! Somtimes the difference between success and failure in getting a Quotaion lies in the way in which the case is presented and the emphasis placed on what is appropriate supporting documentation; that is where a Broker can really help improve the odds of securing one or more Quotations. The application fee we charge is recoverable if the case is insured and concludes successfully.
Can you help me find a Solicitor?: Occasionally we might be able to point you in a certain direction, but by and large because we ourselves are Insurance Brokers and not Solicitors we stick to what we know and tend not to recommend Firms - try looking at www.lawsociety.org.uk and click on ‛Find a Solicitor’.
I’m a Solicitor, do we have to be on a CFA in order to get ATE Insurance for our clients?: No, but some Insurers will not quote terms unless you are on a CFA and it may make a difference to others who might otherwise be inclined to ‛sit on the fence’. Insurers who state that they do not mind if the Solicitor is on a CFA or not but then not offering terms are often one and the same! The rule is that the stronger the case demonstrably is, the less difficulty we will experience in trying to get ATE Quotations, CFA or no CFA.
How long does it take to get one or more ATE Insurance Quotation(s)?: It depends on the complexity of the case and the quality of the supporting documentation, but (and this is ‛worst case’) we aim to be back to you with a useful indication within two to three weeks and provide you with one or more Quotations within a month or so of receipt of all the requisite information. In any event, we will manage your expectations and we can usually ‘up the pace’ with Insurers when we need to.
How many Insurers will you approach?: We deal with most if not all of the ATE Insurers and we regularly approach more than half a dozen Insurers on any one case. We would not go to every Insurer in the market on every case; our skill is to know who is worth approaching on each and every case that we are instructed on.
Can we directly approach an Insurer?: You can, but some Insurers will not deal directly with Solicitors with certain types of cases or prefer to be approached by a Broker. ATE Insurers are more likely to offer Quotations when we are involved. Also, when you approach what you believe is an Insurer, how can you be sure they really are an Insurer as opposed to an intermediary or tied agent?
The answer is ‘yes’, what's the question?: Can I get insurance cover for costs that have already been incurred?; We’re a Firm of Solicitors - can we get cover for our Own Fees?; Our clients are not the claimants, they are the defendants - can we get cover?; Can we get top-up cover?; Is it true that ATE premiums don’t always have to be paid up-front?; Our client’s Proposal has been turned down by one or more Insurer(s) already, can you help?