ATE Insurance UK: Property Litigation Cover Guide

Overview

ATE insurance is a policy you take out once a legal dispute has already arisen, hence the name 'after the event'. The event is the thing that triggered the argument: a breach of contract, a neighbour blocking access, a tenant refusing to leave, a surveyor's error, and so on.

The policy is designed to cover costs you might be ordered to pay if you lose the case. In most property litigation that means the opponent's legal costs under an adverse costs order, along with certain disbursements on your own side such as court fees, expert surveyor reports, barristers' fees, and search costs.

ATE is often arranged alongside a conditional fee agreement (a 'no win, no fee' arrangement) with a solicitor, but it can also be used on its own where a client is funding privately and simply wants protection against losing. Premiums vary widely depending on the strength of the claim, the value in dispute, and the stage at which cover is put in place. Some policies are deferred and self-insured, meaning you only pay the premium if you win.

Key steps

1. Work out your real costs exposure. Before you look at insurance, get a realistic view of what the dispute could cost if it runs to trial. Ask your solicitor to estimate your own likely costs and what the other side's costs might look like too. Property litigation often involves expert evidence from surveyors or valuers, which adds up fast, and adverse costs in the tens of thousands are common even in modest disputes.
2. Check whether existing cover already helps. Many home insurance policies include legal expenses cover as an add-on, and some commercial policies do the same for landlords or property businesses. Read the policy wording carefully, because exclusions for property disputes, boundary issues, and pre-existing matters are common. If you already have cover that responds, you may not need ATE at all, or you may need it only as a top-up for higher limits.
3. Speak to a broker or your solicitor about suitable ATE products. ATE is a specialist market. Not every insurer writes property risks, and the ones that do will want to see a solid case. Your solicitor will usually approach a panel of ATE providers on your behalf, send them the case papers, and get indicative terms. Compare the premium, the limit of indemnity, what is covered, and what is excluded.
4. Review the policy terms before you commit. Look closely at the indemnity limit (is it enough to cover a realistic adverse costs order?), how the premium is calculated, whether it is deferred and contingent, and what happens if you settle, discontinue, or change solicitors mid-case. Insurers typically reserve the right to withdraw cover if the prospects of success drop below a threshold, so understand the reporting obligations.
5. Tell the other side cover is in place, if appropriate. In some cases, disclosing that you hold ATE insurance can shift the dynamic of settlement talks, because it signals you are properly resourced to see the matter through. In others, particularly where there is a security for costs application brewing, the fact of cover can help resist that application. Take tactical advice on timing before you volunteer the information.

Common questions