In many jurisdictions, including England & Wales, courts are increasingly recognising that an ATE insurance policy, when backed by a reputable insurer, can serve as adequate security for costs. Provided there are no exceptional risks of non-payment, and the policy wording offers adequate coverage (and minimal risk of voidance), courts may rule that an insurance policy itself is enough to meet security for costs. 

At TheJudge, we broker ATE policies that have a proven track record of being accepted for this purpose — including in many of the leading legal precedents. But where a standard policy alone might not satisfy the court or tribunal, we can offer enhanced solutions.

If additional assurance is needed, we can advise on instruments such as a Deed of Indemnity. These deeds provide a formal undertaking from the insurer to meet an adverse costs order, even if for some reason the ATE policy itself might not respond. Known as “Bonds” in some jurisdictions, these deeds have been accepted as valid forms of security for costs by the English courts.

Our brokers are experienced in working with legal teams to structure the right solution — helping claimants to continue their case without unnecessarily locking up capital or conceding to pressure from defendants.

Additional wording added to an ATE insurance policy to strengthen its use as security for costs by limiting the insurer’s ability to avoid the policy. AAEs aim to reassure the court that a policy will respond to an adverse costs order. Their effectiveness depends on the specific wording, but typically increase the chances that a an adverse cost policy will be accepted as security for costs.