ATE (After-The-Event) insurance is a type of legal expense insurance taken out after a dispute has arisen, typically in the context of litigation. It covers the insured’s potential liability for their opponent’s legal costs if the insured’s case is unsuccessful, ensuring that the insured is not burdened with these costs.
ATE Insurance gained legal recognition in Ireland following the landmark decision in the case of Greenclean Waste Management Ltd. V Leahy [(No. 2) [2014] IEHC 314] solidifying its position as a potentially valuable tool for individuals and businesses seeking legal costs protection.
It can be used for a wide range of legal cases, including commercial litigation, employment disputes, personal injury claims, and more.
The minimum and maximum levels of cover vary depending on the insurer and the specifics of the case. It’s essential to work with us to determine the appropriate level of coverage for each case. You typically apply for ATE insurance once a case has been accepted, and litigation is underway. This allows the insurer to assess the case’s merits and potential risks accurately.
ATE insurance is a valuable tool for legal practitioners and their clients, offering financial protection and growth opportunities.
Working with Temple Ireland simplifies the process, and it can be applied in a variety of legal cases to mitigate risk and ensure that your clients can pursue justice without fear of financial hardship or as a risk management tool (see In-House Counsel and CFO section of this website for further details).
What are the advantages of ATE?
- ATE gives your client the peace of mind that if the action is lost, they will not be exposed to their opponent’s costs or own disbursements.
- ATE enables a client to transfer the risk of adverse costs from the litigation to the ATE insurer.
- ATE provides an extra incentive for an opponent to settle the case because an independent ATE insurer has looked at the case and has decided to support the claim.
- ATE encourages early settlement when premiums are low.
- ATE “levels the playing field” and enables meritorious litigation to proceed that otherwise would not be pursued.
- ATE enables a client to fix, or at least have much better control over, their costs exposure to the litigation.
How does ATE Insurance level the litigation playing field?
Claims are often made against large organisations that have far greater access to funds to enable them to defend their case aggressively. They will often use robust or aggressive tactics to try and persuade you to settle sooner or for a sum lower than your claim’s t rue value. Examples of this include your opponent making a Caulderbank offer to settle the case before trial or your opponent makes interim applications. Litigation insurance helps in both of these situations.
