What is ATE Insurance?
ATE is an abbreviation for “After the Event” and it is an insurance product specifically designed for incidents that have already occurred and policies are incepted retrospectively. ATE Insurance is usually requested by a solicitor at the point of engagement with a client and where a claim is likely to require litigation through the courts.
ATE Insurance policies for commercial litigation and complex personal injury claims are underwritten on a case by case basis rather than through delegated authority schemes which are geared towards law firms that process large volumes of claims such as RTA. This allows for each case to be fully assessed in detail and for terms to be tailored around each specific case and requirements.
In simple terms ATE is taken out after an event/incident has occurred and when litigation is likely. ATE Insurance is a legally compliant product and does not breach maintenance and champerty or third party funding laws as confirmed by Greenclean Waste Management Limited v Maurice Leahy, a case which travelled from the High Court to the Supreme Court, back to the High Court and ultimately to the Court of Appeal where it was accepted as security for costs.
What does ATE Insurance cover?
ATE Insurance is designed to protect the insured against the risk of adverse costs in the event that their litigation is unsuccessful. The risk of having to pay an opponents costs in the event of an unsuccessful claim can be a barrier that prevents claimants from pursuing meritorious litigation. With ATE in place a claimant is afforded financial security to protect them in the event of the unforeseen occurring and allows a legal practice to adequately protect their clients financial interests. In addition to protecting an insured against the risk of adverse costs ATE Insurance can be used to cover legal disbursements such as court fees, medical reports, expert witnesses, consultants and can include cover for own counsel’s fees. It also provides cover for most awards of costs made during the course of the litigation.
What types of claims is ATE Insurance used on?
ATE Insurance in Ireland can be used to cover a wide variety of litigation including but not limited to:
- Personal Injury Claims
- Medical Negligence Claims
- Commercial Litigation Claims
- Financial Mis-Selling Claims
- Product Liability Claims
- Professional Negligence Claims
- Product Liability Claims
In order for an ATE policy to be incepted the merits of the claim must be good with a likely success rate of 60% or higher which is verified by a legal analysis and counsels opinion.
How is the ATE Insurance premium calculated?
Premiums for ATE Insurance are calculated after an extensive analysis of the claim and its merits have been assessed. In order to obtain terms for ATE Insurance an application form must be completed and accompanied with supporting documentation such as:
- Legal Analysis
- Counsels Opinion
- Medical Reports
- Witness statements
- Expert Witness Statements
- Engineers Reports
- Copy of Proceedings
- Costs Schedule
- Causation Reports
Once the claim and its merits have been carefully assessed the insurer will either provide terms or decline cover. If cover is offered some insurers may offer deferred terms whilst others may require the premium to be paid upfront.
Does ATE Insurance have to be paid upfront?
Some insurers may offered deferred terms whilst some require for the premium to be funded upfront.
If deferred terms are offered the premium only has to be paid if the litigation is successful and damages have been recovered. In the event of unsuccessful litigation the premium for ATE Insurance does not have to be paid by the claimant.
Depending on the complexity of the risk and the insurer providing terms some premiums may be required to be paid upfront prior to cover being incepted.
We appreciate that many claimants will not have the financial means to pay for ATE Insurance if the premium is required upfront so we have the ability to provide funded ATE premiums by using specialist disbursement funding partners within the Irish market.
What is the cost of an ATE Insurance Premium?
Premiums are typically calculated as a percentage of the policy limit once all material facts and case analysis procedures have been assessed. The percentage will confirmed once the particulars, merits, damages and probability of success are taken into consideration by the insurer.
Is there a cost to apply for ATE Insurance?
No. All applications for cover are provided free of charge.
What insurers provide terms for ATE Insurance?
As Litigation Funding and Insurance Brokers we work directly with various ATE Insurance providers that insure litigation in Ireland. To learn more about ATE Insurance Ireland please contact us for a free no obligation review.
How soon can I apply for ATE Insurance?
You can apply for ATE as soon as you have sufficient information and evidence to indicate that your client has a strong merit of success (60%+) and provided the claim meets the financial criteria.
How do I apply for ATE Insurance?
Please contact us in order to discuss your requirements. An application form will be required by the legal team handling the case as well as copies of supporting documentation in order for the insurance company to review the particulars of your case.