Cost-free deeds of indemnity and deferred ATE premiums for insolvency practitioners


TheJudge has secured an exclusive agreement with a leading ‘A-rated’ insurer to provide our Insolvency Practitioner (“IP”) clients with a cost-free extension to meet a security for costs requirement in the form of either a deed of indemnity or non-avoidance endorsement. When utilised alongside deferred and contingent ATE premiums, this means that IPs can protect themselves against the risk of becoming liable for adverse costs, and ensure that claims don’t get stifled by security for costs issues – all for no upfront cost.

Why this is significant?

Any IPs keeping track of recent case law will know that in November 2017 the Court of Appeal (“CoA”) reversed a previous High Court decision in Premier Motorauctions v PricewaterhouseCoopers LLP and Lloyds Bank Plc (“Premier”) which allowed an ATE policy to be used as security for costs. Despite being advised of the additional cost implication for the claimant, the CoA nonetheless insisted that a deed of indemnity be put in place by a UK-based insurer.

In light of the decision in Premier, IPs can expect to face security for costs applications as a matter of course when pursuing claims on behalf of creditors. While several insurers can provide deeds of indemnity or non-avoidance endorsements, these often come with an additional cost to the IP, and in many instances, require an upfront payment. If that cost needs to be funded by, say, a third-party funder, it can significantly reduce the creditor’s net recovery. It could even create greater challenges with regards settlement, as a higher hurdle needs to be achieved before creditors are entitled to a return.

Act before April 2018…

To take advantage of the availability of deeds of indemnity for no additional cost, you’ll need to act fast, as it only applies to incepted cases between now and April 2018 with the insurer in question. While TheJudge will continue to use our bargaining position to eradicate or minimise the costs of addressing security for costs applications going forward, there is no guarantee that underwriters will agree to longer term pricing adjustments.

We recommend applying as soon as you are able, to allow time for due diligence and policy issuance. For advice on what to include in an application please read [here].

Please note, while we have this exclusive offer with a specific insurer, we obviously cannot guarantee that the insurer will ultimately offer cover for a given case. Accordingly, as you would expect from TheJudge, we will also simultaneously seek alternative offers from our panel of insurers in the usual manner.

Also require litigation finance? –  This is no problem, as we can make simultaneous applications to our extensive panel of funders. We now have access to specialist lenders who can finance disbursements (including Counsels fees) at much more competitive rates than have historically been available. For more information on disbursement funding, please read [here].


If you have a case that you feel might benefit from this offer, then please contact:


London and the South

Robert Warner
Director of Broking
t: (0)203 882 7577

Email Rob here

London and the South

Tanya Lansky
t: (0) 203 882 7454

Email Tanya here

Manchester and the North

Emily Thomas
Senior Associate
t: (0) 845 257 6058

Email Emily here