After-the-Event Insurance (ATE)

How ATE Insurance Works

ATE insurance is taken out after a legal dispute has arisen — hence "after the event" — as opposed to before-the-event (BTE) legal expenses insurance, which is purchased as part of a general insurance policy before any incident occurs.

The policy protects the claimant against the costs they would have to bear if the case is unsuccessful. In a no win no fee (CFA) arrangement, QOCS generally protects the claimant from paying the defendant's legal costs. However, the claimant remains liable for their own disbursements — out-of-pocket expenses such as:

• Medical expert report fees (often £1,000–£5,000+)
• Court issue fees (typically £308–£10,000 depending on claim value)
• Counsel's fees for interim hearings
• Police and medical record access fees
• Engineering or accident reconstruction reports

ATE insurance covers these disbursements, removing the financial risk from the claimant. The premium is almost always deferred and self-insuring — it is only payable if the case succeeds, and it is deducted from the damages.

LASPO and Recoverability

Before April 2013, ATE premiums were recoverable from the losing defendant as part of inter partes costs. LASPO 2012 abolished this general recoverability, meaning that ATE premiums are now typically borne by the successful claimant from their damages.

Exceptions to non-recoverability — ATE premiums remain recoverable from the defendant in the following categories:

• Clinical negligence: ATE premiums for expert reports on liability and/or causation (LASPO s 46, Recovery of Costs Insurance Premiums in Clinical Negligence Proceedings Regulations 2013)
• Insolvency proceedings: Under the Insolvency (England and Wales) Rules 2016
• Publication and privacy proceedings: Defamation, privacy, and related claims
• Mesothelioma claims: Diffuse mesothelioma proceedings under LASPO s 48

ATE vs QOCS

ATE insurance and QOCS serve different but complementary functions. QOCS protects the claimant from paying the defendant's legal costs if the case is lost. ATE insurance protects the claimant from paying their own disbursements.

Even with QOCS protection, a claimant who loses their case could face thousands of pounds in unrecovered disbursements. ATE insurance eliminates this risk, which is why most no win no fee solicitors arrange it as a standard part of the funding package.

Before-the-Event Insurance (BTE)

Many people already have legal expenses insurance as part of their home, motor, or travel insurance policies — this is called Before-the-Event (BTE) insurance. Your solicitor should check whether you have existing BTE cover before arranging ATE insurance. Under the SRA Code of Conduct, solicitors must advise clients about alternative funding options including BTE cover.