Key Takeaways
- ATE premium insurance in the UK protects claimants against having to pay their opponent’s legal costs if the case is lost, covering adverse costs and court-approved disbursements.
- After the event insurance is essential in commercial litigation with uncertain outcomes, large legal cost exposure, or in group actions and insolvency cases.
- You typically need to secure ATE insurance before, or soon after, issuing proceedings—delays can narrow your options or make insurance unavailable.
- Without ATE insurance, you risk personal exposure to substantial legal bills if your case is unsuccessful.
- The ATE premium is often only paid if you win your case, but since the Jackson reforms most premiums are not recoverable from the losing side, with certain exceptions in clinical negligence.
- ATE insurance can be combined with “no win, no fee” (CFA) or damages-based agreements (DBA) as part of a comprehensive litigation funding strategy.
- Not all disputes qualify for ATE coverage, so thorough due diligence with our lawyers is vital to assess eligibility and costs.
- We are rated Excellent on Trustpilot with over 130 five-star reviews and a 4.9/5 rating from satisfied clients.
- Our expert litigators provide tailored guidance to help you choose the right protection and avoid costly funding mistakes.
- Speaking to us early puts you in the strongest possible position to secure effective ATE coverage and avoid missing key deadlines.
For tailored, fixed-fee advice about litigation funding and ATE insurance, speak to our expert lawyers today or call 0207 459 4037 for a Free Consultation.
What Does ATE Premium Insurance Cover in UK Litigation and When Should You Consider It?
Imagine losing a £250,000 commercial dispute and being ordered to pay not just your own solicitor’s fees, but a six-figure sum to your opponent as well. For many claimants in England & Wales, this scenario is a real risk under the “loser pays” principle—especially in high-value business disputes, insolvency litigation, or complex group actions.
ATE premium insurance in the UK provides protection against this very risk. It pays out if you lose, covering your opponent’s recoverable legal costs and, in many cases, your disbursements such as expert reports and court fees.
Our experienced litigators advise you at every stage, ensuring that your ATE policy is robust, covers key exposures, and is arranged at the right time. Taking early legal advice maximises your litigation strategy and protects you from unexpected liabilities.
If you are weighing up litigation risk, book a free consultation with our specialist lawyers. We will help you understand your options and secure effective cost protection.
What Is ATE Premium Insurance in the UK and How Does It Protect Claimants?
ATE (After the Event) premium insurance is a specialist policy that covers claimants against adverse costs in litigation. In the UK courts system, if you lose a claim, you are often required to pay both your own legal fees and those of the successful party. ATE insurance protects against this by covering:
- Opponent’s legal costs awarded against you if your case fails
- Your own disbursements, such as court fees and expert reports
- In some cases, additional costs as specified in the policy
Having an ATE policy demonstrates to courts and opponents that you are serious and prepared, which can positively influence negotiation outcomes and court perceptions.
Our litigation team is frequently instructed to secure ATE coverage for clients and offer transparent, fixed-fee advice on how these policies can be tailored to your litigation and funding needs.
What Does After The Event (ATE) Insurance Typically Cover?
ATE premium insurance in England & Wales is tailored to the claimant’s litigation risk. A standard policy usually provides:
- Cover for the opposing party’s costs if you lose
- Protection for your own disbursements (court fees, expert evidence)
- In limited circumstances, cover for counsels’ fees or additional litigation expenses, especially where enhanced cover is negotiated
It is essential to clarify with your legal team exactly which costs are insured, what exclusions apply, and whether any maximum caps are in place.
When Should You Consider ATE Insurance for UK Litigation?
The optimal time to secure ATE insurance is before proceedings begin, or immediately after, to ensure you are protected throughout the litigation process.
Scenarios where ATE insurance is especially important include:
- Commercial claims (where exposure to costs may reach £100,000+)
- Insolvency litigation, where liquidators or administrators have no assets to cover an adverse costs order
- Group actions or mass torts, where multiple claimants multiply the risk of a large costs bill
- Cases requiring significant expenditure on experts or third-party evidence
Our article Has Your Solicitor Failed to Advise You About Funding Options and Cost Risks For Your Case? provides further insight for those concerned about their current solicitor’s risk advice.
How Does ATE Insurance Work With Conditional Fee Agreements and Other Litigation Funding?
ATE premium insurance is frequently combined with Conditional Fee Agreements (“no win, no fee”) and Damages-Based Agreements, forming a comprehensive cost management package.
- CFAs mean your solicitor only gets paid if you succeed, but you are still exposed to the risk of paying your opponent’s legal costs should you lose.
- ATE insurance bridges this gap, protecting you against these adverse costs and certain disbursements.
- Litigation funders often require ATE cover as a precondition for providing capital, especially in high-value or group actions.
If you want an integrated, risk-managed funding solution—blending ATE, CFA, and litigation finance—speak to us for a confidential review of your options.
Can You Combine ATE Insurance With No Win No Fee Agreements?
This is not only common but is actively advised in high-stakes claims. Combining ATE premium insurance with a CFA or DBA ensures you have:
- No exposure to your opponent’s legal costs or agreed disbursements
- No upfront costs for legal fees in the event your claim is unsuccessful
For more information relevant to this subject, see our guide on Professional Negligence Claims Against Solicitors.
Who Pays the ATE Premium and When Is It Due?
The ATE premium is typically the claimant’s responsibility but is often deferred and only payable if your case succeeds. This is known as a “self-insured”, “deferred and contingent on success” policy.
- If you win: The premium is deducted from your damages or settlement sum.
- If you lose: The insurer covers costs, and you pay nothing for the insurance.
Securing the right premium structure with our lawyers maximises your recovery and minimises risk.
What Are the Risks of Proceeding Without ATE Premium Insurance?
Proceeding without adequate ATE insurance exposes you to serious financial consequences, including:
- A court order to pay the opponent’s legal costs (often £50,000–£250,000+ in commercial claims)
- Outlay of your own non-recoverable disbursements
- The risk of personal insolvency or forced company liquidation if unable to pay a costs award
- Limited access to third-party litigation funding
Our lawyers recommend assessing insurance options at the outset. Most funders, liquidators, and commercial backers will require ATE as a non-negotiable condition before supporting litigation.
Is ATE Insurance Available for All Types of Legal Disputes?
ATE insurance is broadly available—but qualification is not automatic. Most insurers require:
- A strong merits assessment, typically a case with a 60–65% or higher prospect of success
- Recent, clear documentation (claim forms, expert reports, correspondence)
- Evidence that the claim is not speculative, and has robust grounds
Eligible disputes include:
- Business contract and commercial claims
- Shareholder or director disputes
- Professional negligence (against solicitors, valuers, or accountants)
- Construction disputes and adjudication enforcement
- Group actions and mass torts
- Insolvency-based claims by liquidators or administrators
Contact our specialist team for a rapid, fixed-fee assessment—we will advise whether your claim is ATE eligible and guide you through the application process.
What Laws, Rules and Deadlines Apply to ATE Premium Insurance in England & Wales?
ATE premium insurance is underpinned by:
- The Civil Procedure Rules (CPR)—especially Parts 44–48, which set out costs rules and funding disclosures
- The Courts and Legal Services Act 1990, including section 58C, which limits recoverability of ATE premiums following the Jackson reforms
- Judicial rules on prompt policy arrangement, documentation, and transparency with the opposing party and courts
Late-arranged or undisclosed ATE policies risk being invalid or not recoverable in the event of a costs dispute.
What Are the Rules on Recovery of ATE Premiums After the Jackson Reforms?
The Jackson reforms drastically reduced the circumstances in which you can recover ATE premiums from the opponent. Under the current rules:
- In most commercial, insolvency, construction, and business claims, you cannot recover the premium from the losing party—it is deducted from your own damages or paid by you
- Only a narrow band of clinical negligence claims allow limited premium recovery under CPR r.46.14 and section 58C of the CL&SA 1990
- All funding arrangements, including ATE, must be declared to the court and the other party at the earliest opportunity (usually in your costs budget or costs schedule)
Missing these requirements risks costs sanctions or the inability to recover insured costs.
What Does the Case Law Say About ATE Premium Insurance?
| Case | Facts | Outcome | Why It Matters |
|---|---|---|---|
| Rogers v Merthyr Tydfil BC [2006] EWCA Civ 1134 | Clinical negligence; challenge to ATE premium | Premium in principle recoverable (rare exceptions) | Highlights exceptional circumstances where premium is recoverable |
| Motto v Trafigura Ltd [2011] EWCA Civ 1150 | Group action; claim that ATE premium was excessive | Premium reduced | Courts will scrutinise premium reasonableness and proportionality |
| John M Flood & Sons Ltd v FGH [2007] EWHC 598 (QB) | Commercial claim; ATE purchased late | No cover—claimant was unprotected | Delayed insurance led to refusal of cover and full personal liability |
Our team continually reviews developing case law to ensure clients benefit from the most up-to-date advice.
How to Secure the Right ATE Premium Insurance for Your Case: Step-by-Step
Securing optimal ATE insurance requires thorough preparation and coordination with our litigators. The process usually involves:
- Obtaining a detailed written merits assessment (ideally from a barrister or specialist solicitor)
- Gathering documentary support—including claim forms, key correspondence, evidence, and any expert reports or opinions
- Preparing a budget for litigation costs and disbursements
- Completing bespoke ATE provider questionnaires with your solicitor’s input
- Reviewing policy offers, scrutinising cover scope, exclusions, premium structures, and claims processes
- Negotiating terms with insurers to maximise coverage and minimise risk gaps
- Executing the policy documentation and ensuring court-compliant disclosure
What Documents Are Required for an Application?
- Detailed claim form and particulars of claim
- Solicitor or barrister’s prospects opinion (ideally ≥60–65%)
- All relevant correspondence and evidence
- Estimates of overall legal costs and disbursements
- Details of any related funding arrangements (such as a CFA or DBA)
What Should Claimants Look for When Comparing ATE Policies?
- Does the policy fully cover opponent’s costs and all key disbursements?
- Are there clear, written exclusions (e.g. dishonesty, fraud claims)?
- When does coverage commence—at the issue, post-settlement, or only if proceedings are started?
- Is the premium structure upfront, deferred, or success-contingent (and what triggers payment)?
- How straightforward and prompt is the claims process in the event of a loss?
- What is the insurer’s track record for reliability and payment?
A robust policy achieves full risk transfer and supports your commercial objectives throughout the litigation journey.
Our Approach to Securing ATE Premium Insurance UK
Our lawyers are recognised in industry publications and ranked in the Law Society Gazette for our success in delivering strategic litigation funding solutions—including ATE premium insurance.
What sets us apart:
- Free, fixed-fee initial reviews of your case and likely ATE eligibility
- Secure Go Transfer portal for fast, GDPR-compliant document sharing
- Direct-access partner support via WhatsApp for rapid strategic advice
- In-depth merits assessments to maximise your chances of approval and the most competitive premium
- Combined funding strategies: our experts regularly combine ATE with CFA, DBA, and third-party finance for optimal outcomes
- Proactive, tough negotiation with ATE providers and brokers for maximum cover and minimal restrictions
- Honest, clear eligibility advice to save your time and avoid false hope
Our 130+ five-star client reviews reflect our meticulous, client-focused approach. If you are considering litigation or want an expert view on funding and insurance, get in touch with our litigators for a free, confidential review.
Frequently Asked Questions
What costs are covered by ATE insurance in England & Wales?
Most ATE policies cover your opponent’s recoverable legal costs, plus your own approved disbursements such as court fees and expert reports. Some provide extra cover for counsel’s fees, but solicitor’s base fees are rarely included unless specifically arranged.
Can I get ATE insurance after my case has started?
In principle yes, but it is much harder and options are limited. Early application—ideally before or at the outset of proceedings—gives you access to better terms and higher chances of being accepted. Waiting risks insurers declining cover.
Is ATE the same as BTE legal expenses insurance?
No. Before the Event (BTE) insurance is included with many household or business policies and purchased before a dispute arises. ATE is arranged once a specific dispute arises and designed for live, ongoing cases.
Does ATE insurance cover all solicitor and counsel disbursements?
Most policies cover counsel/barrister’s disbursements and certain trial outlays, but not your solicitor’s own fees unless specifically agreed. Always check what is included before relying on ATE for all litigation expenses.
How do insurers assess my case for ATE cover?
They require a written legal merits opinion (typically at least 60–65% success prospects), with complete supporting evidence and documentation. Weak or speculative claims are rarely insured.
Will the losing side ever pay my ATE premium after recent rule changes?
Only in very limited circumstances, such as certain clinical negligence cases. In commercial, insolvency, or business disputes, the premium is usually not recoverable from the losing party.
Are there alternatives to ATE premium insurance for litigation funding?
Yes. Alternatives include Before the Event (BTE) insurance, third-party litigation funding, and self-funding with a No Win No Fee agreement. The right choice depends on case type, value, and your approach to litigation risk.
What determines the cost of an ATE premium?
Premiums reflect claim value, complexity, litigation risk, length of proceedings, and estimated opponent’s costs. Deferred and contingent premiums cost more, but relieve upfront financial pressure.
What if my ATE policy is declined or cancelled?
If declined, seek urgent legal advice. We can advise on alternative funding or risk mitigation. Cancellation mid-proceedings is rare but exposes you to the full downside risk, so maintaining compliance with policy conditions is critical.
Can I cancel ATE insurance once arranged?
Normally no, as policies are written based on litigation risk from inception. Some allow cancellation under specific limited circumstances—review cancellation clauses carefully with your solicitor before agreeing terms.
Speak to an ATE Premium Insurance Solicitor Today
If you are considering legal action or have just received a claim, our expert litigation team is equipped to review your funding options and explain whether ATE premium insurance provides the protection your case needs. Our transparent, fixed-fee service means you can proceed with confidence and avoid unpleasant surprises.
Get Specialist Advice on ATE Premium Insurance Today
Understanding ATE premium insurance is essential to protect yourself from the risk of significant legal costs during litigation. Early and strategic use of ATE insurance—combined with the right funding arrangements—empowers claimants and businesses to pursue their cases confidently, regardless of the opponent’s resources.
Our award-winning team provides clear, fixed-fee, and actionable advice, securing robust ATE insurance cover and designing litigation funding solutions bespoke to your circumstances.
Call us now on 0207 459 4037 or fill in our online enquiry form to arrange your Free Consultation.
