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Commercial ATE Insurance
ATE structured for high-value commercial litigation rather than volume consumer claims.
- A judgment or award won
- A judgment against you
- Funder capital deployed
- Law firm fees and WIP
- Security for costs
- The opponent's costsThis cover
- DisbursementsThis cover
- Own legal costs
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
What is Commercial ATE Insurance?
Commercial ATE Insurance is a form of litigation risk transfer that may be arranged around costs risk on substantial commercial claims. ATE structured for high-value commercial litigation rather than volume consumer claims. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
Commercial ATE Insurance
Not a policy. A specimen to show how this cover is structured. Cover exists only when a policy is issued, on its own wording.
- Terms
- Terms, where available, are set case by case through underwriting.
- Protects
- Costs risk on substantial commercial claims, depending on policy terms.
- Terms
- Limit, premium and conditions are set by underwriting on the specific risk.
Clause 1
The insured
Who it is for
Businesses and their advisers running high-value commercial claims — contract, shareholder, professional negligence, competition, fraud and insolvency recoveries — where costs risk is material and a bespoke policy is justified.
Clause 2
Insuring clause
What risks can be protected
Adverse costs, own disbursements and, in some structures, a portion of own legal fees.
Commercial ATE can also be written to satisfy security for costs and to support a funding package.
Clause 3
Operation of cover
How it works
Unlike volume ATE, each commercial policy is underwritten individually on the merits and budget of the case, with a limit set to the expected adverse costs and a wording negotiated with the insured's lawyers.
Conditions typically require regular reporting, compliance with counsel's advice and insurer consultation before settlement.
Clause 4
Underwriting
Underwriting factors
The core assessment is the same as for After-the-Event Insurance: merits, quantum, a proportionate budget, recoverability and the legal team.
The points that weigh most for this cover are set out under "What risks can be protected" and "How it works" above.
Clause 5
Proposal documents
Information required
The standard presentation pack described on the After-the-Event Insurance page, plus the documents specific to this cover noted above.
Clause 6
Limit, premium and staging
Potential structure
- (a)A staged limit tracking the costs budget;
- (b)A deferred, contingent premium that may also increase in stages; and
- (c)Where needed, an anti-avoidance endorsement for security.
Larger limits may be shared between several insurers.
Clause 7
Alternatives
Alternatives
- (a)Self-insuring the costs risk;
- (b)A funder assuming adverse costs within its package; and
- (c)For a group of cases, portfolio cover.
Clause 8
Territory
Jurisdiction notes
Forum rules apply as described on the After-the-Event Insurance page; the jurisdiction guides linked below set out the position forum by forum.
Specimen for explanation only. Terms, limits and exclusions are set by underwriting on each matter and by the wording issued.
Frequently asked
How is commercial ATE different from ATE for personal injury claims?
Personal injury ATE is usually written on standard terms across large volumes of claims. Commercial ATE is underwritten case by case on the merits, budget and opponent of one dispute, with a limit and wording negotiated for that matter.
Is there a minimum claim size for commercial ATE?
There is no universal threshold. Underwriters look at whether the likely recovery is proportionate to the costs being insured; very small claims rarely justify a bespoke policy.
Is Commercial ATE Insurance available for my dispute?
Availability depends on the merits, the quantum, the costs profile and the counterparty. Every risk is assessed individually and no cover exists until a policy is issued.
Does this quote a price?
No. Pricing is a function of the specific risk and is never quoted in the abstract. Nothing on this page indicates the cost or availability of cover.
Can it be combined with litigation funding?
Frequently, yes. Funding supplies capital; insurance defines the downside. The two are often structured together.
General information only. This page is not legal, financial, investment or insurance advice. Any insurance is subject to underwriting and to the terms of the policy wording issued.