ATE insurance for undisclosed commission claims

Temple Legal Protection is actively engaged in assessing ATE insurance requests for commercial cases involving undisclosed commissions. Following the Supreme Court’s decision in Hopcraft and others v Close Brothers and others, we are setting out below the types of cases we may support, and those we are not currently considering.

Our position reflects both the legal developments and our broader approach to risk. We remain committed to supporting meritorious litigation but will do so with careful assessment and appropriate underwriting controls.

Car Finance Commission Claims

We will consider providing ATE insurance for motor finance claims involving undisclosed commissions, but not on a volume or speculative basis.

We are prepared to look at:

Clearly assessed cases where the alleged unfairness goes beyond the typical features of discretionary commission arrangements (DCAs)
Cases with strong supporting evidence, including high commissions relative to the cost of credit, exclusivity or misrepresentation about lender choice, and documented regulatory breaches
Pilot schemes or small-scale groupings that allow for close management of claim quality

What we will not consider:

High-volume schemes based on standardised templates without individual assessment
Cases where the FCA redress scheme, once finalised, offers a suitable remedy
Claims with weak or untested factual foundations

We expect law firms to be fully compliant with SRA and FCA guidance, particularly in relation to advertising, fee deductions and informed consumer choice.

SRA Declaration Now Required for High-Volume Claims

The Solicitors Regulation Authority now requires firms pursuing high-volume claims to formally declare that they understand the relevant rules. This follows a review which identified widespread shortcomings in areas such as misleading marketing, unclear deductions from damages, and inadequate client screening. These issues directly inform our risk appetite. ATE cover will not be offered unless the firm can demonstrate active compliance and careful case selection.

Business Energy Commission Claims

We are also reviewing the potential for ATE cover in business energy commission claims, which concern payments from energy suppliers to brokers. At this stage:

We will consider proposals in principle, and we are open to agreeing terms, premium models and eligibility criteria in advance
However, we would not expect any case to be put on risk before the Supreme Court hands down its judgment in Expert Tooling and Automation Ltd v Engie Power Ltd (expected autumn 2025)

The issues in these cases are distinct from car finance. Many claimants are businesses, not individuals, and commissions are often not entirely hidden. We anticipate that future litigation may turn on evidence of dishonesty or lack of informed consent – both of which will be central to our underwriting.

Other Undisclosed Commission Claims

We may also be willing to consider other undisclosed commission cases involving financial products or commercial transactions, provided:

The claims are individually assessed and supported by strong factual material
There is a clear legal basis for liability and a reasonable prospect of recovery
The commercial rationale for litigation is robust

We do not currently support claims that seek to expand the scope of fiduciary duties into general commercial relationships without clear precedent.

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Wilson Browne Solicitors have a long-standing arrangement with Temple Legal Protection to provide litigation insurance cover for our property litigation clients. It is extremely straightforward to use, the policy quite simply works and it is comforting for clients to have the option of disbursement funding in addition. All in all the whole thing is a bit of a ‘no-brainer’, especially for clients who are naturally concerned about the financial risks when undertaking litigation. Once in place the policy gives both us and clients great peace of mind: it allows us to get on and deliver on our promise of being “all the help you need.

Kevin RogersWilson Browne Solicitors

Temple Legal are brilliant. Jamela and her team have a deep understanding of litigation and legal risk. They are responsive to client requirements throughout and have developed a user-friendly platform for case updates.

Securing ATE insurance cover from Temple Legal provides enormous comfort to libel defendants. It is a key factor in their decision to defend claims against them as it insulates them from the risk of paying opponents’ legal costs.

We look forward to working with Temple Legal again soon.

David RomainEgality Law LLP

We and our clients have used Temple for ATE insurance on many occasions. Most recently we acted for a liquidator pursuing claims to recover assets for the liquidation estate. After lengthy and heavily contested litigation, ultimately settlement was achieved at mediation. That settlement was only possible with the assistance of Temple’s direct, pragmatic and commercial approach. This was much appreciated by both us and the client.

Matthew KellyFreeths Solicitors

Resources & Downloads

Access the technical documents and application forms you need to secure ATE insurance and disbursement funding for your clients

Commercial Solicitor Guide to ATE Insurance Commercial Proposal Form

Commercial Disbursement Funding Guide Commercial Solicitor Application Form

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Common FAQs

Some of the key questions about financial mis-selling litigation.

How does Litigation Insurance for financial mis-selling litigation work?

Traditional legal expenses insurance is often referred to as Before-The-Event or ‘BTE’ cover. Litigation insurance for financial mis-selling claims is used by solicitors and is commonly known as After-The-Event or ATE insurance. The latter is the technically correct term but your clients may better understand ‘litigation insurance’. Whichever terminology you favour, it is a tailored policy put in place with the specific objective of protecting your client from having to pay the opponent’s costs and their own disbursements if they lose their claim.

Who pays for the litigation insurance?

The client. This is usually deducted from the damages recovered. However, our insurance premiums are always fully deferred until successful conclusion of the matter. If the matter is unsuccessful then the premium will not be payable, but we will pay the opponent’s costs and your client’s disbursements.

At what point is the litigation insurance policy purchased?

The litigation insurance policy is purchased after a legal dispute arises. The best time to send a case to us is as soon as you have been able to adequately assess the merits of the claim. Usually, this is after your investigation and the pre-action correspondence has been completed, and before proceedings are issued. However, cases can be referred to us at any stage.

Do you want Counsel’s opinion?

Not at the outset. We would like a case summary from you – to include the background facts of the case, the strengths and weaknesses of the case, how any weaknesses might be overcome, and your overall view of the merits.

What are the benefits of litigation insurance?

ATE provides numerous benefits to clients wishing to pursue a legal action.

Claims can be pursued to their fullest extent
Litigation Insurance removes the risk of having to pay the opponents legal costs if the dispute is pursued unsuccessfully
It mitigates the clients own expenditure on disbursements etc
It provides protection from interim costs orders

ATE Insurance for Undisclosed Commission Claims