Insurance solution
Arbitration ATE Insurance
ATE structured for arbitral costs regimes.
- 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 Arbitration ATE Insurance?
Arbitration ATE Insurance is a form of litigation risk transfer that may be arranged around costs exposure in arbitration. ATE structured for arbitral costs regimes. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
Arbitration 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 exposure in arbitration, 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
Claimants in arbitration who may be ordered to bear the respondent's costs.
Clause 2
Insuring clause
What risks can be protected
The respondent's costs awarded against the claimant, own disbursements and, where requested, security for costs.
Clause 3
Operation of cover
How it works
Much like court ATE, but written around the arbitral rules, the tribunal's costs discretion and the procedural calendar.
Many tribunals apply a costs-follow-the-event approach, though they can depart from it.
Clause 4
Underwriting
Underwriting factors
The core assessment is the same as for International Arbitration 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 International Arbitration Insurance page, plus the documents specific to this cover noted above.
Clause 6
Limit, premium and staging
Potential structure
- (a)Staged limits following the procedural timetable;
- (b)Deferred and contingent premium; and
- (c)Enhanced wording where the policy is offered as security.
Clause 7
Alternatives
Alternatives
- (a)A funder's adverse costs undertaking;
- (b)Cash security; and
- (c)Self-insurance.
Clause 8
Territory
Jurisdiction notes
Forum rules apply as described on the International Arbitration 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
Do arbitral tribunals make the loser pay costs?
Many do, applying a costs-follow-the-event approach, but tribunals have wide discretion and may apportion costs differently. That discretion is part of what the insurer assesses.
Can arbitration ATE be used as security for costs?
Often, with wording adapted for the tribunal and respondent; see our guide to security for costs in arbitration.
Is Arbitration 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.