The financial implications when making a personal injury claim can be worrying, especially if the case doesn’t succeed. You could be left with legal fees or even compensation to pay out without assistance. That’s where After The Event (ATE) insurance comes in.
But what is After The Event insurance? In this guide, we’ll look at how it works and why it’s so important in personal injury claims, especially those that are no-win, no-fee covered.
What is After the Event insurance?
ATE insurance is a policy taken out after an accident has occurred and offers legal costs and disbursements cover that might build up during a claim. A personal injury ATE policy might be used in personal injury, medical negligence and even civil cases, offering peace of mind when it comes to future legal costs.
What does ATE insurance cover?
When it comes to personal injury law, what is ATE insurance covering? As a type of litigation insurance, it usually covers the following:
- Your opponent’s legal costs — If your claim is unsuccessful, you may have to pay legal costs. Insurance will mitigate this.
- Disbursements — These are expenses that might be accrued during the claim process, including costs for medical reports, court fees and solicitor fees.
Please note that ATE covers costs if your claim is unsuccessful, but it does not cover costs relating to client dishonesty or breach of contract.
How does ATE insurance work with no-win, no-fee?
Some solicitors offer a Conditional Fee Agreement, or no-win, no-fee policy, that guarantees your case will only incur legal fees if it is successful. If your personal injury claim falls under no-win no-fee, ATE insurance will cover any of the fees surrounding your case instead. This ensures you won’t be out of pocket if your claim doesn’t succeed.
When and how is ATE insurance arranged?
A solicitor will usually arrange After The Event insurance, meaning you won’t need to search for a provider or handle the paperwork, your solicitor will manage this process on your behalf. They will also inform you whether or not your case needs ATE at all, as some no-win, no-fee agreements provide protection from all fees.
Who pays for ATE insurance – and when?
One of the best parts of ATE insurance is that there are no upfront costs. If your claim is unsuccessful, you won’t pay anything for the insurance. If you are successful, the insurance premium will be deducted from your winnings.
The cost of ATE will vary depending on the severity of your injury as well as the complexity and risk attached to your case. If you get in touch with a solicitor, they will discuss the premium with you and make sure you are aware of the costs associated.
Is ATE insurance compulsory?
After The Event insurance is not a legal requirement for personal injury claims in the UK. However, it is strongly recommended as you might have to pay legal fees if your claim does not succeed, or associated fees if you are part of a no-win, no-fee agreement.
Some solicitors will actually refuse a case if you don’t take on ATE insurance, so be sure to speak to them about their preferences.
Frequently asked questions
Do I pay for ATE if I lose my case?
You will only pay an ATE insurance premium if your case is successful. If your case is unsuccessful, ATE insurance will cover your legal costs and you won’t have to pay the premium.
Is ATE only for personal injury claims?
While ATE insurance is commonly used in personal injury claims, it’s also applicable in other areas of civil litigation, such as medical negligence cases.
Can I choose not to use ATE insurance?
Without ATE insurance, you risk being personally liable for legal costs if your claim fails.
How much does ATE cost?
The cost of ATE insurance will vary based on the specifics of your case, including its complexity and risk level. Your solicitor will provide a clear explanation of the premium before proceeding with it.
Can I cancel it during the claim?
ATE insurance is designed to provide continuous coverage throughout the legal process, so is typically not cancelable.
How Express Solicitors can help
At Express Solicitors, we put your financial protection first during legal proceedings. Our team of experts will make sure that an ATE insurance policy is appropriately arranged as part of your no-win, no-fee agreement when we take on your case.
If you’re ready to make a claim and want the most financial protection possible, make a claim with Express Solicitors today.