ATE Insurance UK: Cover for Inheritance Disputes

What this document is

ATE insurance is a policy you purchase after a legal dispute has started or is clearly on the horizon. Unlike ordinary legal expenses insurance, which is bought in advance as part of a home or motor policy, ATE is arranged specifically for the case in hand.

In inheritance disputes, it is commonly used by claimants and defendants who want to limit their exposure to adverse costs and disbursements if litigation becomes contested or drawn out. Policies vary significantly between insurers, but most are designed to sit alongside a conditional fee arrangement (a 'no win, no fee' agreement) with your solicitor.

The premium is often deferred and sometimes only becomes payable if you win, although this depends entirely on the insurer and the terms offered. Because inheritance litigation can involve complex factual evidence, medical records, and expert reports on matters like testamentary capacity, the costs at stake can be substantial.

ATE gives some breathing room to pursue or defend a claim without the constant worry of a costs order wiping out the estate or your personal assets.

How to use this document

1. Work out whether you have a genuine dispute. Before looking at insurance, be clear on the nature of your claim, whether it concerns validity, reasonable financial provision under the Inheritance Act 1975, executor conduct, or something else. Insurers will want to see that the case has reasonable prospects before they agree to cover it.
2. Speak to a solicitor about funding options. ATE rarely stands alone. It usually works in combination with a conditional fee arrangement or damages-based agreement. Your solicitor should explain how these funding routes interact and whether ATE is appropriate for the kind of claim you are bringing or defending.
3. Get quotes from specialist ATE insurers. Not all insurers underwrite inheritance disputes, so ask your solicitor for introductions to providers who handle contentious probate work. You will typically need to submit a case summary, evidence of prospects, and an estimated costs budget before a quote is offered.
4. Review the policy terms carefully. Pay close attention to the indemnity limit, what triggers cover, what is excluded, when the premium becomes payable, and what happens if you discontinue or settle. Policies can be dense, and a small wording difference may have a large financial consequence later on.
5. Keep your insurer informed throughout the case. Once a policy is in place, you usually have ongoing duties to notify the insurer of material developments, such as new evidence, settlement offers, or changes in prospects. Failing to do so can put cover at risk, so treat reporting obligations as seriously as the litigation itself.

Common questions