After the Event (ATE) Insurance
After the Event (ATE) Litigation Insurance 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 ATE Insurance 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 After the Event Insurance Policy protects the client/Insured against having to pay their Opponent’s costs should the legal action have an unsuccessful outcome, but it normally also covers the Insured’s Disbursements including the ATE Insurance premium and can also (for the right risk) extend to cover the Insured’s Solicitor’s own legal fees (where the Solicitor is not acting under some form of risk sharing retainer).
An After the Event Insurance Policy will invariably cover 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 that have already been incurred prior to the Policy being taken out.