Five Questions Commercial Litigators Regularly Ask About ATE
When advising on a commercial dispute, ATE insurance is often considered alongside a number of practical and strategic factors.
The questions below reflect some of the points our commercial underwriting team are most frequently asked when assessing whether ATE may be appropriate for a case.
The earlier a case is considered, the more options are usually available. In most instances, this is once the merits can be reasonably assessed following initial investigation and pre-action correspondence.
Each case is assessed on its own merits, based on the available evidence and overall prospects of success. We are generally looking at an assessment of 60% in respect of legal merits, but for defamation and privacy cases we are looking at a 51% threshold.
A clear case summary is key. This would usually include background facts, your view on merits, any known weaknesses and how these may be addressed, along with key documents such as pre-action correspondence. Ideally the parties will have exchanged a Letter of Claim and received a Letter of Response so that we can evaluate both sides of the case.
ATE can reduce exposure to adverse costs, which can be an important factor when considering settlement strategy. Staged premiums can also reflect key points in the life of a case. Certain cases are also eligible for a mediation discount therefore if a case settles at a Mediation we will offer a 30% reduction to the premium applicable.
Yes. ATE is often used by well-resourced clients as a way of managing risk and avoiding uncertainty around potential adverse costs, particularly in higher value or more complex disputes.
Looking for More Detail?
These are just a selection of the questions we are regularly asked.
You can find further information about how ATE insurance works, what it covers and how it is structured on our full Commercial ATE FAQs page.
If you would like to discuss a case or check whether ATE might be appropriate, our underwriting team would be happy to talk it through. Contact us today to find how we can help you provide peace of mind for your client.
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