ATE Insurance UK: How to Apply (Solicitor Guide)

Overview

ATE insurance is a policy taken out after a dispute has arisen, usually once litigation is in contemplation or has already begun. The policy sits alongside whatever funding arrangement the client has in place, such as a conditional fee agreement or damages-based agreement, and provides cover against the financial consequences of losing.

The precise scope varies between insurers and products, but a typical policy will respond to the opponent's legal costs if adverse costs are awarded, and to the client's own disbursements such as court fees, expert reports and counsel's fees. Some policies are deferred and self-insured, meaning the premium is only payable if the case succeeds.

Since the Legal Aid, Sentencing and Punishment of Offenders Act 2012 came into force, ATE premiums are generally not recoverable from the losing party, with limited exceptions in clinical negligence for expert report elements. That change shifted ATE from being a near-default add-on to a product that solicitors need to assess carefully for each case.

Key steps

1. Assess whether the case is suitable. Before approaching any insurer, form a clear view of the merits, the likely quantum, the estimated costs to trial and the counterparty's ability to pay. Most insurers expect prospects of success of around 60 percent or higher, though this varies by product. A case that is borderline on merits or where the defendant may not satisfy a judgment will rarely attract cover.
2. Gather the supporting documentation. Insurers want a clear picture of the dispute before they commit. Typically you will need a case summary or counsel's opinion on merits, the key pleadings or pre-action correspondence, a costs budget or estimate to conclusion, details of any existing funding arrangement, and information about the opponent. Well-organised bundles are processed faster than scattergun submissions.
3. Choose an appropriate insurer. Not every ATE provider writes every type of claim. Some focus on personal injury volume work, others on commercial litigation, clinical negligence or insolvency. Check the insurer's financial strength rating, their experience in your case type, their claims-handling reputation, and whether they offer delegated authority schemes that may speed up future applications.
4. Complete and submit the proposal form. Most insurers now use online portals or structured proposal forms. Answer every question fully, disclose anything material about the case honestly, and attach all supporting documents clearly labelled. Non-disclosure at proposal stage can void cover later, so err on the side of telling the underwriter more rather than less.
5. Engage with underwriting queries and bind cover. After initial review, the underwriter will often come back with questions or ask for further information, for example updated costs figures, additional expert input or clarification on liability points. Respond promptly. Once terms are offered, review the policy wording carefully, confirm the premium structure with your client in writing, and bind the cover before any major cost is incurred.