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Equality of arms – ATE insurance for insolvency claims

ATE insurance can be used for all types of insolvency disputes pursued under the Insolvency Act 1986 and Companies Act 2006. We are able to support claims where the insolvency practitioner is acting as the trustee in bankruptcy, a liquidator or an administrator.

We insure a range of insolvency related disputes including: –

  • Claims under section 127 of the Insolvency Act 1986
  • Misfeasance claims under section 212 of the Insolvency Act 1986
  • Fraudulent trading claims under section 213 of the Insolvency Act 1986
  • Wrongful trading claims under section 214 of the Insolvency Act 1986
  • Transactions at an undervalue under section 238 of the Insolvency Act 1986
  • Preference claims under section 239 of the Insolvency Act 1986
  • Transactions defrauding creditors under section 423 of the Insolvency Act 1986

The Temple Advantage for insolvency cases

Our experience of insolvency litigation is considerable and our reputation for excellent service is second-to-none. The products we offer reflect our commitment to listening to our clients and providing effective insurance that enables insolvency practitioners to get the best results out of their claims.

  • ATE insurance for insolvency litigation is used by liquidators, administrators and trustees in bankruptcy
  • No upfront cost of obtaining ATE insurance – and also we do not charge an assessment fee
  • Payment of the premium is deferred until the conclusion of the case and is contingent on a successful outcome
  • Insured clients will have access to disbursement funding from Temple Funding, a subsidiary of Temple Legal Protection. This can be used to fund the court issue fee, expert reports and mediation.

Three new ways to access ATE cover for professional negligence cases

Designed to speed-up and simplify the process so your clients get the protection they need with the minimum of fuss:

  • Espresso – fully delegated authority, automatic disbursement funding. Insurance at the press of a button!
  • Concierge – bespoke underwriting. We design the underwriting process with you to meet the needs of your clients to save time and cost;
  • Solo – suitable for more valuable and complex individual cases requiring additional scrutiny.

Getting the timing right

The ATE insurance policy is purchased after a legal dispute arises.
The best time to send a case to us is as soon as you are reasonably able to 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.
It is useful to see pre-action correspondence, when available, any insolvency practitioner’s witness statement and exhibits, and information about the opponent’s ability to pay damages and costs.

Insolvency litigation case studies

Click here to read two case studies with a total claim value of over £300,000 – one providing cover for a liquidator in his claim against a former member of a limited liability partnership and the other success in a claim against a bankrupt resulting in ‘a very good settlement at the door of the court’.

Your questions answered

How does ATE Insurance for insolvency disputes work?

Traditional legal expenses insurance is often known as Before-The-Event or ‘BTE’ cover. Litigation insurance for insolvency disputes 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 prefer, it is a bespoke 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 case.

Who is recorded as the Insured on the policy?

The Insured will usually be recorded as the insolvency practitioner, acting as the trustee in bankruptcy, administrator or liquidator.

Who pays the premium?

The insolvency practitioner will be liable to pay the premium.

What happens if there is a global settlement?

We understand that global settlements are commonplace in insolvency litigation. If it is necessary to reduce the premium in order to bring about a settlement, we can consider doing so on a commercial basis that works for us and the client.

What cover does the policy provide?

The standard terms and conditions provide indemnity for the Insured’s own disbursements and the other side’s costs. Own disbursements which are indemnified under the terms of the policy, for example mediator’s fees or the cost of an expert report, will be eligible for disbursement funding.

Do I have to be acting on a CFA?

Whilst we do not ordinarily require a solicitor to act on a CFA for any area of work, it is usually the position that lawyers acting on insolvency disputes are instructed on a CFA basis. If you are not working on a CFA basis, we may ask why this is and how the fees are funded. This will not affect our view of the merits of the case.

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Contact our experts

If you would like more information on our ATE insurance and disbursement funding products for insolvency litigation, or you have any other legal expenses insurance query, please email or call me on 01483 514428. We look forward to hearing from you.

Matthew Pascall

Legal Director – Head of Commercial

Matthew Pascall

Matthew was called to the Bar in 1984 and joined Guildford Chambers two years later. Spending more than 30 years in practice there, he was listed as a Legal 500 Tier One barrister.

He joined the commercial team at Temple Legal Protection as Senior Underwriting Manager in 2017.

Matthew was appointed to Temple’s Board in December 2022 as Legal Director and Head of Commercial.

His knowledge of the commercial legal sector and litigation practice is invaluable to the business and our clients, providing specialist experience to lead the commercial litigation insurance team.