After-the-Event (ATE) Insurance UK: Full Guide 2026

Overview

After-the-Event insurance is a form of legal expenses cover arranged after a triggering event, typically an accident, a contractual dispute, or a professional negligence issue, has already occurred. Unlike Before-the-Event cover, which sits quietly on a home or motor policy waiting to be called upon, ATE is purchased in response to a specific dispute that is either contemplated or already underway.

The central promise of the policy is protection against adverse costs, meaning the legal bill your opponent can ask you to pay if the court rules against you. In the English legal system, the losing party is generally ordered to contribute towards the winner's costs, and without insurance that liability falls personally on the unsuccessful litigant.

Many ATE policies also extend to your own disbursements, such as court fees, expert reports, and counsel's fees, although this depends on the policy wording. ATE is frequently paired with a Conditional Fee Agreement or a Damages-Based Agreement so that a claimant can pursue a case with limited out-of-pocket exposure.

Key steps

1. Assess the strength of your case early. Before approaching an insurer, have an honest conversation with your solicitor about the merits. Insurers will want to see a case with reasonable prospects of success, often at least 60 percent, because they are pricing risk. A weak case will either be declined or attract a premium that makes the whole exercise uneconomic.
2. Decide what you actually need the policy to cover. Work out whether you only need protection against the other side's costs, or whether you also want your own disbursements covered. Expert reports and court fees can run into thousands of pounds in complex claims, so policy scope matters. Speak to your solicitor about which risks are most likely to bite in your particular dispute.
3. Compare policies and premium structures. ATE premiums can be fixed, staged, or calculated as a percentage of the sum insured. Some policies are deferred and self-insured, meaning you only pay the premium if you win, while others require payment upfront. Staged premiums rise as the case progresses, so settling early is cheaper than going the distance to trial.
4. Check the exclusions and reporting duties carefully. Every ATE policy contains conditions that can void cover, including duties to notify the insurer of settlement offers, to follow solicitor advice, and to act reasonably throughout. Failing to pass on a Part 36 offer, for example, could leave you exposed personally. Read the policy wording with your solicitor and make sure you understand what is expected of you.
5. Arrange the policy before costs escalate. Timing is a real factor with ATE. The earlier you put cover in place, the broader the protection and often the lower the premium. Leaving it until after a defence is filed or after significant disbursements have been incurred can mean those earlier costs fall outside the policy, so treat insurance as part of your pre-action planning.