ATE stands for After the Event insurance. It is a specialist form of legal expenses insurance that is arranged after a legal dispute has arisen, providing cover for dispute resolution costs such as a claimant’s risk of paying adverse costs, claimant’s legal fees, and disbursement costs associated with litigation or arbitration. At TheJudge, we can tailor ATE solutions to support both claimants and law firms in mitigating the financial exposure of costs involved in resolving a dispute.

After the Event (ATE) insurance is a type of legal expenses insurance purchased after a dispute has arisen. It protects the policyholder—typically a claimant—against the financial risks of litigation (i.e. liability for litigation costs). Depending on the cover selected, ATE insurance can help to safeguard against adverse costs, own-side legal fees, and disbursement costs if the case is unsuccessful.

At TheJudge, we work with leading insurers to structure bespoke ATE solutions, helping clients and their legal teams pursue claims with greater confidence and reduced financial risk.

If you are a claimant involved in litigation or arbitration and could be exposed to significant legal costs, ATE insurance may be a wise choice. Your solicitor should be able to advise you on what options may be available. It can protect you against the risk of paying your opponent’s legal fees (adverse costs) and, in some cases, also cover your own legal fees and disbursement costs if the case is unsuccessful.

For claimants funding their litigation, or firms acting on an alternative fee basis, ATE insurance can be a critical risk management tool. It may also play an important role in satisfying opponents or the court when facing security for costs applications.

At TheJudge, we can help assess whether ATE insurance is appropriate for your case and design tailored solutions to suit your legal and financial strategy.

ATE (After the Event) insurance is arranged once a legal dispute has arisen. Once in place, if the insured party loses the case, the policy responds by covering agreed legal costs—typically including the opponent’s costs (adverse costs) and, in some cases, the client’s own legal fees and disbursement costs.

Premiums are often deferred and contingent on success, meaning there is no upfront cost, and the premium is only payable from the proceeds of the matter, if the case succeeds—making it a cashflow-friendly solution for many clients.

At TheJudge, we broker ATE insurance policies tailored to your case, negotiating the best available terms from leading insurers to minimise financial risk and support your litigation strategy.

The policyholder will pay for the ATE insurance—typically, the claimant or their legal representative arranges and pays for the ATE insurance.  However, many policies are structured on a deferred and contingent basis, meaning the premium is only payable if the case is successful, from the damages recovered.

In most cases the cost of ATE is not recoverable from your opponent, but some rare cases, the cost of the premium may be recoverable from the losing party, depending on the jurisdiction and the terms of the litigation. At TheJudge, we work with clients to secure competitive premium structures that align with their commercial objectives and legal strategy.

Whether ATE insurance premiums are recoverable depends on the jurisdiction and the nature of the proceedings. In England and Wales, for example, ATE premiums are generally not recoverable from the losing party in most commercial cases, following changes introduced by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO).

However, exceptions remain, such as in certain insolvency proceedings. In the UK, ATE insurance premiums can still be recoverable in defamation and privacy proceedings in some circumstances. This exception exists under the Defamation Proceedings Costs Order 2014, which allows successful claimants to recover the cost of certain ATE premiums from the losing party. Recoverability is subject to strict criteria and typically applies only to cases involving issues of public interest, freedom of expression, or reputational harm. The exact scope of recoverability continues to evolve through case law and regulatory changes.

If losing your case would expose you to significant legal costs, ATE insurance can be an extremely valuable form of protection. It provides peace of mind by covering adverse costs—and, in some cases, your own legal fees and disbursement costs—should the case be unsuccessful.

ATE insurance is especially worthwhile if You are self-funding your litigation and want to limit downside-risk if the matter is unsuccessful. 

At TheJudge, we assess the specific risks of your case and work with your legal team to structure an ATE solution that aligns with your commercial priorities—often on a deferred and contingent basis, meaning no upfront premium and nothing to pay if the case is lost.

There are no specific disadvantages to ATE insurance as it provides important financial protection, but it is helpful to be aware of a few considerations:

• Cost – There is a cost involved, and if you are successful, this will usually be payable from your damages. In most cases, clients find the peace of mind and reduction of financial risk to be worth the relative cost of the ATE insurance premium.

• Policy terms – Not all ATE policies provide the same level of cover; some offer much more extensive protection than others. Ensuring you have the right policy—one that meets your needs, aligns with your legal team’s strategy, and reflects a realistic assessment of your case—is an important part of arranging insurance for litigation or arbitration.

• Recoverability – In most cases, the premium will not be recoverable.

Litigation finance is a broad term that refers to a range of financial products designed to support the funding and management of legal claims. This includes third-party funding, After the Event (ATE) insurance, and other specialist insurance products such as Judgment Preservation Insurance (JPI), Damages-Based Agreement (DBA) insurance, and more.

Together, these solutions help claimants, law firms, and investors manage the financial risks associated with litigation and arbitration, improving access to justice while protecting capital and controlling costs. At TheJudge, we provide tailored litigation finance solutions that align with your case strategy and commercial objectives.

Litigation finance involves the use of specialised financial products to manage the costs and risks of pursuing or defending legal claims. Depending on the product, finance may be provided upfront to fund legal costs, or insurance policies may be purchased to protect against adverse outcomes or unexpected expenses.

For example:

• Third-party funding typically involves an investor providing capital to cover legal fees in exchange for a share of any successful recovery.

• ATE insurance protects against the risk of paying the opponent’s costs and sometimes your own legal fees if the case is unsuccessful.

• Other products like Judgment Preservation Insurance safeguard the value of awards or judgments from default.

At TheJudge, we help clients identify and structure the right mix of litigation finance solutions to reduce financial exposure and support their legal strategy from start to finish.

The cost of ATE insurance in the UK varies depending on several factors, including the type of case, the level of risk, the potential value of the claim, and the scope of cover required.

Typically, ATE premiums are calculated as a percentage of the insured amount depending on the complexity and risk profile of the case. Many policies are structured on a deferred and contingent basis, meaning the premium is payable only if the case is successful, which helps manage cash flow.

At TheJudge, we work closely with insurers to secure competitive premium rates tailored to your specific case, ensuring the best balance between cost and protection. We conduct market searches on behalf of clients and their law firms to make sure premiums are competitive.

ATE insurance is usually associated with claimants; however, it may also be available to defendants in very specific circumstances. Some insurers are willing to provide coverage for defendants who can demonstrate a strong defence and a valid counterclaim. A defendant’s ability to secure ATE insurance depends on convincing the insurer that they have a very high chance of success (usually 60 %+) and the financial capacity to pay the premium either upfront or upon success (where there is valid counterclaim with high prospects of succeeding). 

Because the premium is ordinarily paid from the proceeds of the claim, there generally needs to be a financial counterclaim or an offer of an upfront premium to attract an insurer’s interest.

ATE (After the Event) insurance is tailored to cover specific legal costs, providing flexibility based on the needs of your case. While offers of coverage can vary based on the specifics of the case, protections can include:

• Opponent’s legal costs or adverse costs insurance: This insurance covers the costs you may be ordered to pay the opposing party if your case is unsuccessful.

• Own legal fees and disbursements: May include coverage for your own solicitor’s fees and disbursements, such as court fees and expert witness costs.

• Security for costs: Some policies can be structured or supplemented to make them more likely to be accepted as security for costs, which may be required in certain circumstances.

It's important to note that not all types of coverage will be available in every case. The availability of specific protections depends on factors such as the nature of the dispute, the jurisdiction, and the insurer's underwriting criteria.

At TheJudge, we work closely with you to assess your case and tailor an ATE insurance policy that aligns with your specific needs and objectives.

After the Event (ATE) Insurance

ATE insurance is a form of legal expenses insurance purchased after a legal dispute arises. Depending upon the terms of the policy it may cover legal costs incurred by the policyholder, such as: 

• Adverse costs, meaning the legal fees of the opposing party if the case is lost.

• Own fees and disbursements, such as court fees, expert witness fees, lawyer’s fees and other necessary expenses.

ATE insurance is typically used in commercial litigation and arbitration cases, providing financial protection against the risks associated with legal proceedings. The premium is often deferred and contingent upon the success of the case, meaning it is payable only if the case is won. This structure allows claimants to manage the financial risks of litigation without upfront costs.

Note: ATE insurance is distinct from other pre-paid forms of legal insurance, which are taken out before disputes arise, often referred to as ‘BTE’ or ‘Before the event insurance.’

Judgment Preservation Insurance (JPI) is designed to safeguard a prevailing party's legal award from the risk of reversal or reduction on appeal. This insurance ensures that the policyholder will recover at least an agreed-upon portion of a legal award, regardless of the outcome of any appeals or subsequent proceedings. JPI is particularly beneficial for claimants or plaintiffs who have secured a favourable judgment and wish to protect that award during the appellate process. 

TheJudge has successfully arranged JPI policies for clients, safeguarding their financial interests in the face of appeals. Our deep understanding of the complexities involved in litigation and arbitration insurance allows us to deliver effective solutions that meet our clients' needs.