ATE Insurance UK: Public Law Claims Cover Explained

Overview

ATE insurance is a litigation policy taken out after a legal dispute has already arisen. The clue is in the name: After-The-Event, meaning after the facts giving rise to the claim have occurred. It sits alongside your conduct of the litigation rather than being a general cover you hold in the background.

The core purpose is straightforward. If you lose your case, the losing party in England and Wales is usually ordered to pay a portion of the winning side's legal costs. That adverse costs order can run into tens or even hundreds of thousands of pounds in public law work.

ATE insurance is structured to respond to that liability, and often to your own disbursements too, such as court fees, expert reports and counsel's fees. Unlike Before-The-Event cover bolted onto a household or motor policy, ATE is priced and underwritten around the specific case.

The premium reflects the strength of the claim, the likely costs exposure and the stage at which cover is taken out. In many arrangements the premium is deferred and self-insured, meaning it is only payable if you win.

Key steps

1. Assess whether ATE is appropriate for your claim. Not every public law matter needs or justifies ATE cover. Weigh up the likely adverse costs exposure, whether costs protection rules already apply (for example in Aarhus Convention environmental claims), and whether the other side is likely to seek costs if you lose. A claim with modest costs risk may not warrant a premium. 2. Gather the case materials an insurer will want to see. Underwriters typically review the pre-action correspondence, grounds of claim, any counsel's opinion on prospects, and an estimate of costs to conclusion. The stronger and more organised the papers, the easier it is to secure cover at a sensible premium. Poorly prepared submissions often get declined or priced heavily. 3. Compare policies and premium structures. ATE products vary significantly. Some offer deferred premiums payable only on success, others require an upfront element. Cover limits, exclusions, and the treatment of own-side disbursements differ between providers. Read the policy schedule carefully and ask about what happens if the case settles early or if you discontinue. 4. Take out cover at the right moment in the case. Timing matters. Premiums are generally cheaper earlier in proceedings because the insurer is taking on less information risk. Leaving it until close to trial can narrow your options and push the premium up. That said, you need enough information about the claim to make a sensible application, so the sweet spot is usually once the grounds and response are clear. 5. Keep your insurer informed as the case develops. Most ATE policies include conditions requiring you to notify material changes: new evidence, settlement offers, Part 36 offers, or shifts in prospects. Failing to keep the insurer updated can put cover at risk. Treat the policy as a live relationship rather than a document you file and forget.