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ATE Insurance for Employment Tribunals UK Guide

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Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
If you are preparing for an employment tribunal, the prospect of legal costs can feel as daunting as the dispute itself. After the Event (ATE) insurance is one of the tools people use to manage that financial exposure, whether they are bringing a claim or defending one. The policy is taken out once a dispute has already arisen, and it typically covers certain legal costs and liabilities that arise if the case does not go your way. While employment tribunals work differently from the civil courts when it comes to costs orders, there are still situations where ATE cover can offer real peace of mind. This guide walks through how ATE insurance works in the tribunal context, what it tends to cover, and the practical points worth thinking about before you commit to a policy.

Overview

ATE insurance is a specific type of legal expenses cover that you buy after a dispute has already arisen, rather than as part of a general insurance policy held in advance. In the context of an employment tribunal, it is usually bought by claimants or respondents who want protection against the financial consequences of losing the case or incurring unexpected legal bills.

Unlike the civil courts, employment tribunals do not routinely order the losing party to pay the winner's legal costs. Costs orders do happen, though, particularly where a party has behaved unreasonably, pursued a claim with no reasonable prospect of success, or caused hearings to be postponed.

ATE policies can respond to those adverse costs, as well as to your own disbursements such as expert reports, counsel's fees, and other out-of-pocket expenses. Policies vary widely in what they include, the premium structure, and whether the premium is payable only if you win, so reading the cover schedule carefully matters.

Key steps

  1. Assess your exposure early. Before looking at policies, work out what is actually at risk. This means thinking about the strength of your position, the likely length of proceedings, the prospect of a costs order against you, and the disbursements you will need to fund along the way. A clear picture of exposure helps you judge whether ATE cover is proportionate to the dispute. 2. Compare available policies carefully. ATE products are not standardised, so the cover, exclusions, and premium structures differ significantly between insurers. Look closely at what triggers a payout, what is excluded, whether the premium is deferred and contingent on winning, and the overall limit of indemnity. A cheaper premium with narrower cover may leave gaps you did not expect. 3. Check how the premium is paid. Some ATE premiums are self-insured, meaning you only pay if you win your case, which removes upfront cost pressure. Others require payment regardless of outcome. Understanding when the premium falls due, and whether it sits inside or outside the policy limit, is essential before you sign the proposal form. 4. Disclose your case fully to the insurer. ATE underwriters assess risk based on the information you provide about the dispute, including the merits, the evidence, and any prior conduct. Incomplete or inaccurate disclosure can lead to the policy being avoided when you need it most. Give the insurer a full and honest picture, supported by any relevant documents they request. 5. Keep cover under review as the case develops. Employment disputes can shift direction, for example if new evidence emerges, the other side amends their position, or settlement discussions open up. Stay in contact with your insurer about material changes, because failing to update them may affect cover. Review the policy alongside your case strategy at each significant stage.
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 £149.

Common questions

Q Do employment tribunals award costs against the losing party?
Employment tribunals do not routinely order the loser to pay the winner's costs, which is one of the main differences from civil court proceedings. Costs orders can still be made in specific circumstances, such as where a party has acted unreasonably, pursued a hopeless claim, or caused avoidable delay. Because these orders are possible rather than predictable, some parties take out ATE insurance to manage that tail risk.
Q Who can take out ATE insurance for a tribunal claim?
Both claimants and respondents can take out ATE cover, although the policies available to each side may differ in structure and price. Insurers will want to understand the nature of the dispute, the merits as you see them, and the likely costs exposure before offering terms. Cover is usually arranged after the dispute has arisen but before significant costs have been incurred.
Q What does an ATE policy typically cover in an employment dispute?
Cover varies by insurer, but policies commonly respond to adverse costs orders, your own disbursements such as counsel's fees and expert reports, and sometimes tribunal-related expenses. Some policies also include cover for wasted costs or specific procedural events. Exclusions are equally important to review, as they can limit how and when the policy pays out.
Q Is the ATE premium paid upfront or at the end of the case?
This depends on the product. Many ATE policies are sold on a deferred and self-insured basis, meaning the premium is only payable if the case succeeds and is often paid from the recovery. Other policies require upfront payment regardless of outcome. The structure materially affects affordability, so check the proposal documents carefully.
Q Can ATE insurance be recovered from the losing side?
In most civil litigation, ATE premiums are no longer recoverable from the losing party following changes introduced by the Legal Aid, Sentencing and Punishment of Offenders Act 2012, subject to limited exceptions. Recovery in the employment tribunal context is also generally not available. In practice, the premium is a cost for the insured party to bear, which is why deferred premium structures are attractive.
Q Will ATE insurance pay if I behave unreasonably during the case?
Most ATE policies contain conduct-related exclusions, so unreasonable behaviour, failure to cooperate with the insurer, or non-disclosure of material facts can void cover or trigger refusal of a claim. Insurers expect the insured to run the case sensibly and to keep them informed of significant developments. Read the policy conditions closely to understand what is expected of you.
Q Do I need a solicitor to arrange ATE insurance?
ATE policies are usually arranged through a solicitor or legal representative, because insurers rely on a professional assessment of the merits before offering cover. Some brokers offer direct access products, but these are less common for contested employment disputes. If you are representing yourself, speak to a broker or adviser about what is available to litigants in person.
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 £149.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.