Frequently Asked Questions
What is After the Event insurance?
ATE is an insurance that is taken out after a dispute has arisen. It insures a party to a dispute against the risk of the liability to pay their opponents costs.
The Access to Justice Act 1999 came into effect in April 2000 and ensured that the premiums charged for ATE insurance are payable by the losing opponent, as an additional liability, if the legal action is successful.
Personal injury lawyers are increasingly aware of the importance of ATE insurance for their clients’ cases – and they are correct to do so because solicitors have a professional obligation and duty under 2.03(g) of the Solicitors’ Code of Conduct to advise their clients of the existence and/or availability of insurance to manage their client’s litigation risk, regardless of the type of retainer agreed.
What does Temple’s insurance cover?
The insurance will indemnify the insured’s liability for their opponent’s costs and own disbursements, but excluding own counsel’s fees.
Is there any assessment fee or joining fee for using Temple?
No. The assessment by Temple’s expert underwriters is completely free and we do not charge any fee for joining a delegated authority scheme.
What if my client has before-the-event (BTE) Insurance?
Temple assist you in deciding whether ATE is preferable to BTE insurance and in what circumstances. We can also cover cases that have existing BTE but where the indemnity provided by the policy is inadequate, or becomes exhausted.
What types of cases can be insured?
Any personal injury legal action, be road traffic accidents, employers liability, occupiers liability or industrial disease. Any personal injury action that is pursued in England or Wales that has reasonable prospects of success can be insured. However insurers other than Temple are often only prepared to insure limited areas of litigation beyond RTAs and EL cases.
When does cover have to be arranged?
As soon as you have enough information to decide that the legal action has reasonable prospects of success. Clearly it is in your client’s best interests to have insurance cover as soon as possible.
How are the premiums structured?
The premiums are stepped, which means that the amount payable depends on the stage at which the legal action concludes. Temple’s policies have four steps. The earlier the case settles, the lower the premium will be. All steps (and the increases in the premium) are identified at the inception of the policy. This stepped approach encourages the opponent to settle earlier, when the premiums are cheaper, thus giving your client a speedier resolution of their issues. Our competitive RTA premiums start from just £90.
Who pays the premium if the case is successfully settled or won?
The premium is paid by the opponent as part of your client’s entitlement to recover their costs.
Who pay the premium if the case is lost or abandoned?
Part of the cover under a Temple policy provides indemnity for the full cost of the premium. The policy limit is defined to include the premium in addition to the sum insured.
When is the premium payable?
Payment is deferred until the conclusion of the legal action so it is payable when you recover it from your opponent.
Are premiums recoverable in full?
We have an excellent track record of recovering our premiums in full by providing technical support to resist challenges. We ensure that we provide the most competitive premiums possible to help with this.
Do Temple provide delegated schemes?
Yes. Delegated authority schemes can be offered to any firms with a reasonable volume of work and can be offered for many different types of litigation, ranging from standard personal injury work such as RTAs and employers liability to industrial disease, civil actions against the police and actions against the MOD.
How frequent are the reporting requirements?
If you operate a delegated authority scheme then there are minimal reporting requirements, using simple status case submitted monthly. In addition to this, we will shortly have an online policy issuing and reporting system. For one-off cases, you need to update us on significant developments in the case and/or at 6 monthly intervals, whichever comes first.
What happens if a Part 36 Offer is made?
Again, if you have a scheme with us, then the decision to make or reject offers will be delegated fully to you by us. However, with one-off cases you will be required to tell us of any offers being made and we will consider them with your guidance. We will normally support your recommendation.
What happens if we fail to beat a Part 36 offer?
Our policies provide full Part 36 cover, meaning that if you fail to beat a Part 36 offer then we will pay claims for adverse costs arising from the same, unless the client has ignored your advice to accept any given offer.