ATE Insurance
ATE Insurance is taken out once legal proceedings are contemplated. The insurance will indemnify the insured’s own disbursements and his opponent’s costs and disbursements in the event that the legal action is ultimately discontinued or lost at trial.
The ATE market in its current form came into being in April 2000 following the introduction of the Access to Justice Act 1999, which provided that the successful party to litigation could recover the cost of his ATE policy from the opponent.
ATE from Temple
What does the insurance cover?
In the event that your client is unsuccessful in his case, the insurance will indemnify the opponent’s costs and disbursements. Your client’s disbursements will also be covered, even if they were incurred before the policy was taken out.
When is the premium payable?
The premium is due at the conclusion of the legal action.
Who pays the premium if the case is successful?
Along with recovering your costs and disbursements, the premium can be recovered from the unsuccessful opponent.
Who pays the premium if the case is lost?
Temple always provides self-insured policies meaning that part of the cover provided is the premium. Consequently, if your client is unsuccessful and there is a claim on the policy, the cost of the premium forms part of the claim so that your client does not have to pay.
What types of cases can be insured?
All litigation pursued in England and Wales that has reasonable prospects of success. Temple has dedicated underwriting teams for personal injury, clinical negligence and commercial litigation.
Who can be insured?
Any party to a dispute whether a company, corporation, charity, partnership or individual may apply for cover through their solicitor.
Benefits of insuring with Temple
Benefits to your firm
- ATE Insurance unlocks litigation which may otherwise not be pursued because of the risk of losing a case and having to pay the opponent’s costs. Working with Temple will give you a strong offering to bring in new clients which would otherwise be wary of pursuing litigation.
- Temple operates a swift and simple application process for your cases, alternatively, we can offer delegated authority schemes allowing you to insure cases without referral to the underwriting team.
- You will have direct access to experienced underwriters throughout the life of the case
- You will be working with a financially secure insurer with a proven track record
- Temple can offer training for your staff with CPD points
- You are obliged by the Solicitors Code of Conduct 1997 to advise your clients about the availability of insurance as a source of funding and Temple can help with your explanation of ATE
Benefits to your client
- Clients can ‘afford’ to litigate without the financial fear of losing their case
- ATE can be a useful negotiating tool once the opponent knows insurance is in place
- There is no upfront premium payment
- Premiums are recoverable and proportionate to the risks in the case
- ATE insurance levels the playing field for clients lacking the financial strength of their opponent
- Further cover can be provided during the life of the case if necessary – we will not leave your client “high and dry”
Further Information:
