After the Event (ATE) Insurance is a type of legal expenses insurance policy that provides cover for the costs incurred in the pursuit or defense of litigation. The policy is purchased after the cause of a legal dispute has arisen which is why it is named After the Event Insurance. It is also referred to as ATE Insurance, Conditional Fee Insurance, CFA insurance, Post-Event Insurance, AEI or LEI.

The name is also used to distinguish this type of insurance from another type of legal expenses policy that is purchased to cover the cost pursuing of defending litigation before the cause of the dispute has occurred. This type of policy is called Before The Event Insurance (BTE). This is also known as Litigation Insurance or Legal Expenses Insurance (LEI). After the Event insurance can be purchased for nearly all areas of litigation with the exception of matrimonial or criminal law.

Unique features of ATE Insurance

The premium charged by After the Event Insurance Companies is, in principle, recoverable by the successful litigant as part of costs from the losing party.

• Premiums are often available on a deferred and self-insured basis so that the premium is only payable by the policyholder at the conclusion of the case, and then only if the case is successful.
• Most policies now insure the premium if the case is lost. This means that if the premium payment is deferred, the premium is simply absorbed by the insurer. If the premium is paid when the policy is taken out, the cost of the premium is reimbursed by the insurer. In both examples, the insurer also pays for the client’s insured legal costs liabilities.
• The policyholder may not have to pay the premium or may be reimbursed for payment of the premium if the case is not successful. This is known as a ’self insured’ or ‘conditional upon success’ premium.

A quotation for After The Event insurance is applied for by the instructed solicitor or legal representative rather than the policyholder themselves. The solicitor/legal representative is the link between the insurer and the policyholder and will liaise with the insurer as the litigation progresses.