ATE Insurance Premiums UK: Costs & Payment Guide

Overview

An ATE insurance premium is the amount an insurer charges to take on the financial risk of your litigation. In broad terms, the policy is designed to cover adverse costs (the other side's legal bill if you lose) and, depending on the product, your own disbursements such as court fees, counsel's fees, and expert reports.

The premium reflects how risky the insurer believes your case is, how much cover you need, and what extras the policy includes. Unlike a motor or home insurance premium, ATE premiums are typically priced case by case rather than off a standard rate card.

Two claims with the same headline value can attract very different premiums once an underwriter has looked at the merits, the opponent, and the likely costs. It is also worth knowing that since the Jackson reforms took effect in April 2013, ATE premiums are generally no longer recoverable from the losing party in most types of civil claim, with limited exceptions such as clinical negligence cases for expert report costs.

That shift changed how premiums are structured and paid, which is why the deferred and contingent model has become so common.

Key steps

1. Talk to your solicitor about whether ATE is right for your case. Not every claim needs ATE cover, and not every case will qualify. Your solicitor will usually have relationships with brokers or insurers and can flag early whether the merits, the value, and the likely costs make ATE a sensible option for what you are trying to achieve.
2. Gather the case information the underwriter will want to see. Insurers assess risk before quoting, so expect to share the letter of claim, any evidence you have, counsel's view on prospects, and an estimate of costs on both sides. The stronger and clearer the picture you can present, the more accurately the insurer can price the premium.
3. Compare the policy terms, not just the headline premium. A cheaper premium may come with a lower limit of indemnity, carve-outs for certain costs, or strict conditions that can void cover. Look carefully at what is insured, what is excluded, the level of cover, and any cancellation terms before you commit.
4. Check when and how the premium becomes payable. Many ATE policies use a deferred and contingent structure, meaning you only pay if you win, but some involve staged payments or upfront elements. Make sure you understand the payment trigger, who pays if the case settles, and what happens if you discontinue.
5. Keep the insurer informed as the case develops. ATE policies usually require you to notify the insurer of key developments, settlement offers, and changes in prospects. Staying on top of these obligations protects your cover and avoids any nasty surprises if you later need to claim on the policy.