ATE Insurance UK: What Litigation It Covers (2025)

Overview

ATE insurance is a policy you take out after a dispute has already arisen, which is why it is called 'after the event'. It is different from before-the-event cover, which is often bundled into home or motor policies and is purchased in advance of any incident.

The core purpose of ATE is to insure you against adverse costs. In England and Wales, the general rule is that the losing party pays a significant portion of the winning party's legal costs. That exposure can be substantial, often running into tens or hundreds of thousands of pounds in complex litigation.

A well-matched ATE policy can cover the opponent's costs if you lose, and may also cover your own disbursements such as court fees, expert reports and barrister fees. Premiums are usually paid at the end of the case and are often only payable if you win, which is known as a deferred and contingent premium. This structure makes ATE particularly useful when combined with a conditional fee agreement with your solicitor.

Key steps

1. Check whether your dispute falls within a recognised litigation category. Insurers typically underwrite ATE against defined types of claim such as personal injury, clinical negligence, commercial disputes or property matters. The first step is identifying where your dispute sits, because this drives both the availability of cover and the likely premium.
2. Get an early view on merits from your solicitor. Most ATE providers expect a written opinion on prospects of success before they will quote, and many will only offer cover where the case has reasonable or strong prospects. Your legal representative will usually need to confirm the claim is more likely than not to succeed.
3. Estimate the likely costs of both sides through to trial. Insurers price the policy based on the worst case exposure, which means understanding your own disbursements and the opponent's likely costs. This estimate should factor in expert witnesses, counsel fees, court fees and the stage at which the case might settle.
4. Compare cover limits, exclusions and premium structures across providers. Not all ATE is the same. Some policies cover only adverse costs, others include own disbursements, and exclusions vary widely. Look carefully at the limit of indemnity, what triggers the premium becoming payable, and any behaviour that could void the cover.
5. Complete the proposal and disclose everything material. ATE is a contract of utmost good faith. Failing to disclose weaknesses in the case, prior offers, or adverse evidence can lead to the insurer avoiding the policy later. Work with your solicitor to make sure the proposal is accurate and complete before it is submitted.