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ATE Insurance UK: How It Works & What It Covers

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Part ofATE Insurance UK

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 thinking about bringing or defending a claim in England or Wales, the financial risk can feel as daunting as the legal argument itself. After the Event (ATE) insurance is one of the main tools claimants use to manage that risk, and it has become a familiar feature in personal injury, commercial, and professional negligence disputes. This guide walks through how ATE insurance actually works in practice, what it typically covers, how providers decide whether to offer you a policy, and what to weigh up before committing. It is written for people who have never taken out this kind of cover before, as well as those who want a clearer sense of where ATE sits alongside conditional fee agreements and damages-based agreements. By the end, you should have a solid grasp of how the mechanics fit together.

Overview

ATE insurance is a type of legal expenses cover taken out after a dispute has arisen, which is where the name comes from. Unlike Before the Event (BTE) insurance, which people buy in advance as part of a household or motor policy, ATE is arranged once the legal problem is already on the table and litigation is being considered.

The core purpose is straightforward: if your case does not succeed, the policy steps in to pay some or all of the costs you would otherwise be ordered to meet. That usually includes the other side's legal costs under an adverse costs order, and it can also extend to your own disbursements such as court fees, expert reports, and barrister's fees.

ATE is commonly arranged alongside a conditional fee agreement (commonly called a 'no win, no fee' arrangement) with your solicitor, because the two together give a claimant meaningful protection against the two biggest financial worries in litigation. Premiums vary widely and are usually linked to the size and risk profile of the claim.

Key steps

  1. Talk to your solicitor early about risk. Before you approach any insurer, sit down with your solicitor and get a realistic view of the claim's strengths, likely costs, and the potential exposure if you lose. ATE providers will want to see this kind of assessment, so doing the groundwork first makes the rest of the process faster and more productive.
  2. Compare providers and policy terms. Not all ATE policies are alike. Some are aimed at personal injury, others at commercial or insolvency work, and the exclusions and deferred premium arrangements differ. Look for an insurer authorised by the Financial Conduct Authority, and ask your solicitor which providers they regularly work with and why.
  3. Submit the case for underwriting. Your solicitor will usually put together a pack for the insurer including a summary of the dispute, the merits, a costs budget, and the amount of cover needed. The insurer's underwriters then assess whether the case meets their risk criteria, which often means a reasonable prospect of success.
  4. Review the offer and accept the policy. If the insurer is willing to offer cover, you will receive terms setting out the premium, the limit of indemnity, any exclusions, and whether the premium is staged or deferred until the end of the case. Read this carefully with your solicitor before signing, because later changes can affect cover.
  5. Keep your insurer informed as the case develops. ATE policies usually require you to update the insurer on significant events, such as disclosure of new evidence, settlement offers, or changes to the costs budget. Failing to do so can put cover at risk, so treat the insurer as a stakeholder throughout the life of the claim.
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 £89.

Common questions

Q What does ATE insurance actually cover?
Cover varies between policies, but most ATE policies respond to the other side's legal costs if you lose, which is the single biggest financial risk in litigation. Many also cover your own disbursements such as court fees, expert evidence, and counsel's fees. Your solicitor's own fees are usually dealt with separately under a conditional fee agreement, so always check exactly what sits inside and outside the policy wording.
Q When should I arrange ATE insurance?
The short answer is as early as practical, ideally before costs start to build and before any formal proceedings are issued. Insurers prefer to underwrite cases while the picture is still developing, and premiums can rise the later you leave it. That said, cover can sometimes be arranged mid-case, though the terms may be tighter and the insurer will want a full update on what has happened so far.
Q Do I have to pay the premium upfront?
Many ATE policies are structured with a deferred premium, meaning you only pay it if you win the case, and it can sometimes be recovered from damages or settlement funds. Other policies require payment at inception or in stages. Since the Jackson reforms, the recoverability of ATE premiums from the losing side is limited in most case types, so this point is worth discussing carefully before you sign.
Q Can any case get ATE cover?
No. Insurers typically want to see that the claim has reasonable prospects of success, usually around sixty per cent or higher, and that the likely damages justify the level of cover needed. Very speculative claims, claims with limited evidence, or disputes where the defendant may not be able to pay are often declined. Your solicitor can give you a sense of whether your case is likely to attract cover.
Q What happens if I win the case?
If you win, the policy generally does not pay out, because there is no adverse costs order against you. You will normally owe the premium to the insurer if it was deferred, and depending on the policy this may be paid from your damages. The exact mechanics depend on the policy wording and the terms of any conditional fee agreement you have with your solicitor.
Q Is ATE insurance the same as legal expenses insurance on my home policy?
No, although they can overlap. Legal expenses cover attached to a home or motor policy is Before the Event insurance, taken out before any dispute exists. ATE is arranged after a specific dispute has arisen. If you already have BTE cover, your solicitor should check whether it can respond to your claim before you pay for a separate ATE policy, as duplicating cover is rarely sensible.
Q Does ATE insurance replace the need for a solicitor?
Not at all. ATE is a financial product that sits alongside legal representation, not a substitute for it. You still need a solicitor to conduct the case, advise on strategy, and manage correspondence with the insurer. In practice, most ATE policies are arranged through solicitors because insurers want professional input on the merits and the likely costs profile of the dispute.
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 £89.

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.