BA
Written by Brad Askew
Legal Tech Founder
Civil & Commercial Law background · Founder of LegalDocuments.co.uk
We’re not a law firm — we help you find the right legal support. For advice on your situation, speak to a legal adviser or find a solicitor.
Updated April 2026 · England & Wales
BA
Written by Brad Askew Legal Tech Founder
Civil & Commercial Law background · Founder of LegalDocuments.co.uk
Updated May 2026
·
England & Wales
If you are weighing up whether to pursue a claim through the courts, the cost risk is often the thing that makes people hesitate. After the Event (ATE) insurance exists to soften that risk by covering some of the costs you might have to pay if your case does not succeed.
It is a specialist corner of the insurance market, and it sits within a framework of UK statute, regulator oversight, and contract law principles that anyone buying a policy should at least broadly understand. In this guide I walk through the main pieces of that framework, who regulates ATE providers, what the Insurance Act 2015 changed for policyholders, and the practical points worth checking before you sign up.
The goal is to leave you better informed, not to replace a conversation with someone who knows your specific claim.
Overview
ATE insurance is a policy bought after a legal dispute has arisen, usually once you know you are going to litigate or have already started. Unlike Before the Event cover, which is typically bundled with home or motor policies, ATE is purchased for a particular piece of litigation.
It is designed to protect the policyholder against adverse costs orders (the other side's legal costs if you lose) and often against disbursements such as court fees, expert reports, and counsel's fees. Premiums are commonly deferred and contingent, meaning you only pay the full premium if the case succeeds, though this depends entirely on the policy wording.
ATE is commonly used alongside a Conditional Fee Agreement or Damages-Based Agreement with a solicitor, and it is regulated as a general insurance product in the UK. That means the provider must be authorised, the policy must be transparent, and certain statutory duties apply to both sides of the contract.
Key steps
01
Check the insurer is FCA authorised. Before you commit to any ATE policy, look up the provider on the Financial Conduct Authority register. Only authorised firms can legally sell general insurance in the UK, and the register confirms the permissions a firm holds. If your solicitor is recommending an insurer, it is reasonable to ask why and to see the FCA reference number.
02
Read the scope of cover carefully. Policies vary more than people expect. Check what is covered (adverse costs, own disbursements, counsel's fees), what the indemnity limit is, and what is excluded. Some policies only respond in certain procedural situations, so the detail of what triggers a payout matters far more than the headline promise of cover.
03
Understand the premium structure. Find out whether the premium is deferred, self-insured, or payable up front, and whether it is staged (rising as the case progresses to trial). Ask what happens to the premium if you settle early, if you discontinue, or if the case is struck out. The answer should be clearly set out in the policy schedule.
04
Comply with the duty of fair presentation. Under the Insurance Act 2015 you must disclose every material circumstance you know, or ought to know, about the claim. That includes weaknesses, prior offers, and anything that might influence a prudent insurer. Getting this wrong can entitle the insurer to avoid the policy or reduce the payout, so take the disclosure step seriously.
05
Keep the insurer informed as the case develops. Most ATE policies include ongoing conditions: notify the insurer of Part 36 offers, significant procedural developments, changes in prospects of success, and settlement discussions. Failing to keep the insurer in the loop is one of the most common reasons claims on ATE policies run into trouble later on.
Common questions
QWho regulates ATE insurance providers in the UK?
The Financial Conduct Authority (FCA) regulates firms selling general insurance, which includes ATE. The FCA sets conduct standards, authorises firms, and maintains a public register you can search to confirm a provider has permission to offer insurance. The Prudential Regulation Authority also has a role for some larger insurers on financial soundness, but the FCA is the main conduct regulator consumers will interact with.
QWhat did the Insurance Act 2015 change for policyholders?
The Insurance Act 2015 replaced the old duty to disclose under the Marine Insurance Act 1906 with a duty of fair presentation. It also changed the remedies available to insurers for breaches, introducing a more proportionate system rather than automatic avoidance in every case. For ATE buyers the practical effect is that disclosure obligations remain serious, but the consequences of innocent mistakes are usually less severe than they once were.
QIs the ATE premium recoverable from the losing party?
For most types of litigation the ATE premium is no longer recoverable from the losing side, following changes introduced by the Legal Aid, Sentencing and Punishment of Offenders Act 2012. There are limited exceptions, including certain clinical negligence cases where the premium covers the cost of expert reports on liability and causation. The position can be technical, so it is worth checking how it applies to your type of claim.
QDo I need ATE insurance if I already have a CFA?
A Conditional Fee Agreement deals with your own solicitor's fees if you lose, but it does not usually protect you from having to pay the other side's costs. ATE insurance is what typically fills that gap. Whether you need it depends on the risk profile of the case, the other party's likely costs, and your appetite for risk. Many CFA-backed claims are paired with ATE cover for exactly this reason.
QWhat happens if I breach a condition of the ATE policy?
Breaching a condition, for example failing to notify a Part 36 offer or misrepresenting the prospects of success, can give the insurer grounds to refuse the claim, reduce the indemnity, or in some cases avoid the policy entirely. The specific consequences depend on the policy wording and the nature of the breach. This is why reading the conditions carefully at the outset is so important.
QCan an ATE policy be cancelled during the case?
Insurers often reserve the right to cancel or withdraw cover in defined circumstances, such as a material change in the prospects of success or a breach of policy conditions. Policyholders usually also have cancellation rights, particularly within any cooling-off period. Cancellation mid-litigation can have serious consequences, so if an insurer raises concerns you should address them promptly rather than waiting.
QHow do I complain if something goes wrong with an ATE insurer?
Start by using the insurer's internal complaints procedure, which FCA-authorised firms must provide. If you are not satisfied with the response and you qualify as an eligible complainant, you can usually escalate the matter to the Financial Ombudsman Service. Eligibility depends on the size and nature of the policyholder, so check the current criteria on the Ombudsman's website before assuming you can use the scheme.
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Brad Askew Legal Tech Founder
Brad has a background in civil and commercial law and founded LegalDocuments.co.uk to make clear, reliable legal information accessible to everyone. This site is not a law firm and does not provide regulated legal advice.
Legal disclaimer
This article is for general information only and does not constitute legal advice. We are not solicitors. For advice on your specific situation, please consult a qualified solicitor.
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