The Basics Of After the Event Insurance

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

  • ATE Insurance allows you to continue with any lawsuit, which

    sometimes may be closed due to the risk of losing the case and having to

    pay the opponent’s costs.

  • Application for this type of policy is quick and easy
  • Insurers who offer this policy always have a proven track

    record and are financially secure

  • You can afford to continue with your legal case without the

    financial fear of losing it

  • There is no upfront premium payment 

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.