The following can potentially be insured through the use of ATE insurance:
- A client’s adverse costs exposure;
- Own disbursements;
- A proportion of the client’s own solicitor’s fees; and
- Deeds of indemnity are potentially available to manage any security for costs applications the client may face. Such indemnities are vastly more economical than third party funders putting cash into court.
- DEFERRED AND CONTINGENT PREMIUMS
The vast majority of ATE insurance premiums quoted are deferred and contingent upon success, meaning the client only pays a premium in the event of a successful outcome.
LARGE POLICY LIMITS AVAILABLE
ATE policies can cover significant cost exposures. At TheJudge, we are market leaders in arranging insurance capacity exceeding £1million.
Many of our commercial litigation and arbitration applications require legal costs cover in the range of £1million to £6million. However, we also arrange cover for ‘heavyweight’ litigation and arbitration, including group actions where the cost exposure can exceed £15million for each side of the dispute.
RECOVERABLE PREMIUMS – BUT YOU’LL HAVE TO ACT FAST!
If an ATE policy is taken out before implementation of LASPO, the premium should be a recoverable cost in the litigation. For substantial commercial cases, this could mean a significant saving for the client and, for smaller cases, it could be what makes the case economically viable to pursue, without the client having to take too much risk.