ATE insurance
ATE Insurance Cost
How after-the-event premiums are set, the structures used to pay them, and why no calculator can price your case.
- 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
The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
How much does ATE insurance cost?
There is no fixed price. An ATE premium is set on the specific case: the size of the limit, the prospects of success, the stage reached and how the premium is paid. Premiums that are deferred and payable only if the case succeeds are usually higher than premiums paid up front, because the insurer may never be paid.
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- Questions
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On this page · 8 sections2 min read
Key points
4 to know
- The premium is priced on the case, not from a rate card.
- Deferred, contingent premiums cost more but need no cash up front.
- Staged premiums rise only if the case reaches later stages.
- In England and Wales the premium is generally not recoverable from the loser.
How we arrange it
One outline. We take it to the insurers that write ATE insurance.
You don't need to find, contact and brief each insurer yourself. Send us one confidential outline; we approach the market on your behalf and bring the terms back side by side.
Going direct
- Each insurer, separately
- Repeated to every insurer you approach
- Research who writes this kind of risk
- Different formats, hard to compare
- Calls, forms and follow-up with each one
Through us
- Us, once
- Shared once, and only where you agree
- We identify the markets that suit it
- Set side by side on limit, premium and conditions
- A short outline — we do the chasing
Nothing is shared with any insurer until you have agreed what will be presented, and to whom.
What drives the premium
The limit of indemnity (how much cover), the underwriter's view of the prospects, the time the insurer will be on risk, the stage of the case when cover starts, and whether the opponent can pay if you win.
A strong claim with a proportionate budget and a solvent defendant attracts better terms.
How premiums are paid
- 01
Up front at inception
- 02
Deferred to the end of the case
- 03
Deferred and contingent, payable only if the case succeeds, usually from the recovery
Premiums may also be staged, stepping up at procedural milestones, and some are expressed partly as a share of damages.
Why online ATE premium calculators can't price your case
Because the premium depends on the merits, budget and opponent of one dispute, no calculator can give a reliable figure for a commercial case.
Tools can illustrate how exposure builds, but only underwriting produces a price.
Who pays the premium
The insured, usually the claimant.
A funder or law firm sometimes pays or arranges it. With a contingent premium, the practical effect is that it is paid from the damages only if the claim succeeds.
How to get better terms
Approach early, provide a candid merits opinion and a proportionate phased budget, show that the opponent can pay, and consider risk-sharing by your lawyers.
Late approaches close to trial are usually more expensive.
Frequently asked
6 questions · answered in plain terms
Is there an ATE insurance premium calculator?
Not one that can price a commercial case. Premiums depend on the merits, budget and opponent of the specific dispute, so only underwriting produces a figure.
Do I pay for ATE insurance if I lose?
Not if the premium is deferred and contingent: it is payable only if the case succeeds. With an up-front premium, the premium has already been paid.
Are ATE premiums recoverable from the losing side?
In England and Wales, generally not for policies taken out on or after 1 April 2013, with limited exceptions.
Why are contingent premiums more expensive?
The insurer is paid only if the case succeeds and only at the end, so it prices in the risk of receiving nothing and the delay.
Does the premium go up during the case?
With a staged premium it can: the amount steps up if the case reaches later stages such as disclosure or trial.
What information do I need for an ATE quote?
A case summary, counsel's merits opinion, the pleadings, a phased costs budget for both sides and information on the opponent's ability to pay.
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.