17th May 2010
After the Event Insurance is a type of
insurance policy which provides cover for the costs incurred for legal expenses
such as, in pursuit or defence of litigation. This policy is purchased after a
legal dispute has begun due to certain incident that has taken place. Thus it
is called “After the Event”. This policy
is also known as ATE insurance, Litigation Insurance, Conditional Fee
Insurance, Post-Event Insurance, AEI OR LEI Insurance.
This insurance can be purchased for all
types of litigation and is commonly used for both civil and commercial
Premium payments of this insurance policy
are postponed until the conclusion of the case and also subject to the outcome.
With this strategy, After the Event Insurance premiums can also be recovered
from the other side under the “loser pays” principle. Thus this policy can be
enjoyed by individuals, companies facing bankruptcy and even larger companies.
does this insurance policy cover?
If you, as an owner of this policy are
unsuccessful in your case, the insurance will cover the opponent’s costs and
disbursements. Your expenses on this lawsuit will also be covered even if they
were incurred before the policy was obtained.
is the premium payable?
As stated above, the premium is due only at
the conclusion of the legal case.
pays the premium if the case is successful?
In a situation such as this, the premium
can be recovered from the unsuccessful opponent, including the recovery of your
costs and disbursements.
pay the premium if the case is lost?
If you have been unsuccessful and you are
faced with a claim, the cost of the premium forms part of the claim. Therefore,
you as the owner of the policy will not need to pay.
types of cases can be insured?
After the Event Insurance covers legal
cases that have reasonable prospects of success at the end of the hearing.
can be insured?
Any party such as a company, corporation,
individual or partnership who is involved in a dispute can apply for this cover
via their solicitor
to you and your company via this policy
sometimes may be closed due to the risk of losing the case and having to
pay the opponent’s costs.
record and are financially secure
financial fear of losing it
Given above are a few basics on After the
Event Insurance policy. There are a number of online web stores who specialise
on this type of insurance. You will require special expertise such as your
solicitor to study the covers and possibilities of obtaining the policy. The
websites also offer assistance to their clients by offering information and
advice with regard to the purchase of this insurance. Since this policy is only
obtained when you are faced with a lawsuit, additional care and thought has to
be given depending on the context of your litigation.