ATE Insurance for Defamation UK: Costs Cover Guide

Overview

ATE insurance is a litigation cost policy taken out after a legal dispute has already started or is clearly on the horizon. Unlike household or motor insurance, which you arrange before anything goes wrong, ATE is built specifically to respond to a known piece of litigation.

In defamation work, that usually means a libel claim (written or broadcast statements) or a slander claim (spoken statements), and sometimes connected causes of action such as malicious falsehood or misuse of private information. The core purpose of the policy is to shield the insured person from adverse costs, meaning the legal fees of the other side if the case is lost.

Depending on the product, cover can also extend to the insured's own disbursements, such as court fees, barrister's fees, and expert reports. Premiums vary widely and are typically linked to the perceived risk of the claim, the value at stake, and the stage at which cover is bought.

Some insurers agree to defer the premium until the end of the case, and in certain circumstances only charge it if the case succeeds.

Key steps

1. Assess the merits of your defamation dispute early. Before approaching an ATE insurer, you need a realistic view of the strengths and weaknesses of your position. Insurers underwrite based on prospects of success, so a weak claim or defence may be declined or priced very high. Gather the key evidence, including the statements complained of, dates of publication, and any harm suffered.
2. Understand the costs landscape you are facing. Defamation proceedings run through specialist parts of the High Court and can involve meaning hearings, trials of preliminary issues, and complex disclosure. Ask your lawyer for a costs estimate covering each likely stage, so you know what you might owe if you lose and what your own disbursements could reach.
3. Approach ATE insurers or a specialist broker. Not every insurer writes defamation risks, because libel and slander carry unusual features such as jury-free trials, serious harm thresholds, and reputational factors that are hard to price. A broker who regularly places media and reputation risks can approach the right markets and present your case in a way underwriters will engage with.
4. Compare policies carefully on scope and exclusions. Two policies at similar premiums can behave very differently. Check the limit of indemnity, whether own-side disbursements are included, how the premium is calculated, whether it is deferred or contingent on winning, and which specific causes of action are covered. Look closely at exclusions, cancellation rights, and any obligations to follow counsel's advice.
5. Keep your insurer informed as the case develops. ATE cover usually comes with conditions requiring you to notify the insurer of material changes, settlement offers, and counsel's views on prospects. Breaching those conditions can lead to cover being reduced or withdrawn. Treat the insurer as a stakeholder in the litigation and keep documentation tidy throughout.