Taking a dispute to court in England and Wales is rarely a comfortable experience. Even when you feel strongly that the law is on your side, the financial exposure of losing, including having to pay the other side's costs, can be enough to make anyone pause.

That is where After the Event insurance, usually shortened to ATE, comes into the picture. It is a form of litigation insurance taken out once a dispute has already arisen, and its job is to shield you from the costs consequences of an unsuccessful claim.

On this page I want to walk through what ATE actually does, when it tends to be worth considering, and the practical points that often catch people out. Whether you are a claimant weighing up a personal injury action, a commercial dispute, or a professional negligence matter, the principles are broadly the same.

Overview

ATE insurance is a policy purchased after a legal dispute has arisen but typically before proceedings are issued or concluded. Its purpose is to protect the policyholder against the financial downside of losing the case. In the English civil system, the general rule is that the losing party pays a significant portion of the winning party's legal costs, on top of their own.

That 'loser pays' principle can turn a disappointing outcome into a genuinely ruinous one, particularly in commercial cases where costs can run well into six figures. A typical ATE policy covers the opponent's recoverable legal fees and the disbursements you have incurred, such as court fees, expert reports, and barrister's fees.

Some policies also cover your own solicitor's costs, though the scope varies considerably between insurers. Premiums can sometimes be deferred and self-insured, meaning they are only payable if you win, which makes ATE a practical tool for funding litigation where cash flow is tight. Policies are usually arranged through a solicitor or a specialist broker.

Key steps

Assess whether ATE is appropriate for your dispute. Not every case benefits from ATE. It tends to suit claims where the merits are reasonably strong, the sums at stake are meaningful, and the opponent has the means to enforce a costs order against you. A quick conversation with your solicitor about the likely costs exposure on both sides is a sensible first step before approaching any insurer.

Gather the information an insurer will want to see. Underwriters will ask for a clear picture of the dispute: the background facts, the legal basis of the claim, an estimate of the damages being sought, and a view on prospects of success. Your solicitor will usually prepare a case summary or merits assessment. The stronger and more organised this material is, the better the terms you are likely to be offered.

Compare policies and understand what is covered. ATE products are not standardised. Limits of indemnity, covered disbursements, premium structures, and exclusions all differ. Read the policy wording carefully and ask questions about anything that is unclear, particularly around what happens if the case settles, if you discontinue, or if the insurer decides to withdraw cover partway through.

Confirm the premium arrangement before committing. Premiums may be payable upfront, staged, or deferred and contingent on winning. Deferred and self-insured premiums are common in consumer and personal injury work, but less so in complex commercial disputes. Make sure you understand when the premium falls due and whether any part of it is recoverable from the other side under current costs rules.

Keep your insurer informed throughout the case. Once cover is in place, most policies require you to notify the insurer of key developments: Part 36 offers, changes in prospects, new evidence, or settlement discussions. Failing to keep them updated can give the insurer grounds to decline cover later. Treat the insurer as a silent partner in the litigation and communicate through your solicitor accordingly.

If you’re dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £49.

Common questions

QWho typically takes out ATE insurance?

ATE is most commonly used by claimants in civil litigation, including personal injury claimants, commercial claimants, and individuals pursuing professional negligence or contractual disputes. Defendants can sometimes obtain cover too, though the market for defendant ATE is narrower. It is particularly popular where the claimant wants to litigate without the worry of having to pay the other side's costs out of their own pocket if things do not go to plan.

QHow much does an ATE policy cost?

Premiums vary widely depending on the value of the claim, the assessed prospects of success, and the level of cover purchased. Some policies involve modest upfront premiums, while others are structured so the premium is only payable if the case succeeds. Because pricing is risk-based and bespoke, the best way to get a realistic figure is to have your solicitor approach two or three insurers for indicative terms.

QIs the ATE premium recoverable from the losing opponent?

For most types of civil litigation in England and Wales, ATE premiums are no longer recoverable from the losing party following changes introduced by the Legal Aid, Sentencing and Punishment of Offenders Act 2012. There are limited exceptions, for example in some clinical negligence cases for the premium covering expert reports. Your solicitor can confirm whether any part of the premium might be recoverable in your specific type of claim.

QWhat happens if I lose the case?

If you lose and the policy responds, the insurer will pay the covered costs up to the policy limit. These typically include your opponent's recoverable legal costs and your own disbursements. You should still expect to be liable for anything outside the scope of the policy, such as costs above the indemnity limit or items the insurer has excluded. Reading the wording carefully beforehand is essential.

QCan an ATE policy be cancelled or withdrawn?

Yes. Most policies allow the insurer to decline or withdraw cover if prospects of success drop below a certain threshold, if the insured fails to disclose material information, or if reasonable settlement offers are unreasonably rejected. This is one reason insurers want regular updates on the case. If cover is withdrawn, you may be left exposed to costs from that point on, so the triggers are worth understanding at the outset.

QDoes ATE work alongside a no win no fee agreement?

Very often, yes. ATE is frequently paired with a Conditional Fee Agreement or a Damages-Based Agreement, because these arrangements protect you against your own solicitor's fees if you lose, while ATE handles the opponent's costs. Together they can make litigation accessible to people who would otherwise be priced out. Your solicitor can explain how the two products interact in the context of your specific dispute.

QWhen should I arrange ATE cover?

The earlier the better, usually before proceedings are issued. Insurers prefer to underwrite a case at an early stage when costs are still modest and the position is still evolving. Leaving it until midway through litigation often means higher premiums, narrower cover, or an outright refusal. That said, some insurers do offer mid-case cover, particularly where there has been a meaningful development such as a favourable ruling.

Official Sources

Guidance · HMCTSMinistry of Justice – Civil Procedure RulesRead on justice.gov.uk →

LegislationLegal Aid, Sentencing and Punishment of Offenders Act 2012Read on legislation.gov.uk →

Brad Askew Legal Tech Founder

Brad has a background in civil and commercial law and founded LegalDocuments.co.uk to make clear, reliable legal information accessible to everyone. This site is not a law firm and does not provide regulated legal advice.

Legal disclaimer

This article is for general information only and does not constitute legal advice. We are not solicitors. For advice on your specific situation, please consult a qualified solicitor.

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