After-the-Event (ATE) Insurance Explained

Q: How much will my ATE cost?

Variable by case type: Specialist solicitors should provide specific quotes. Premium is typically modest given the protection provided.

After-the-Event (ATE) insurance is a specific UK legal expenses product designed to protect claimants pursuing personal injury claims from adverse costs orders if their cases fail. Unlike Before-the-Event (BTE) insurance — which is purchased before any incident occurs — ATE insurance is arranged after the cause of action has arisen, typically at the same time as a Conditional Fee Agreement is signed. ATE has been an important component of UK no win no fee arrangements since the late 1990s, but the role and structure of ATE was substantially changed by the LASPO 2012 reforms and the introduction of Qualified One-Way Costs Shifting (QOCS). Understanding when ATE is needed, what it covers, and how it interacts with QOCS is essential for claimants entering CFAs.

This guide explains how UK ATE insurance works, the costs and coverage, and how it integrates with the broader no win no fee framework.

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What Is ATE Insurance?

Basic Function

ATE provides specific protection:

Insurance purchased after a cause of action has arisen
Protects claimant against adverse legal costs
Premium typically paid only if case successful
Premium waived if case lost

Difference from BTE

BTE (Before-the-Event) — bought before incident
Often included in home/motor insurance
BTE provides funding for legal costs directly
ATE provides insurance against adverse costs

Why ATE Developed

Historical context:

Legal aid restrictions in 1990s
CFAs needed to fund cases
Claimants needed protection against adverse costs
ATE designed for this purpose

What ATE Covers

Adverse Costs

If your case fails:

Defendant’s legal costs
Subject to court orders
Specific limits in policy
Substantial protection

Disbursements

Costs your solicitor incurs during your case:

Court fees
Medical expert reports
Specialist expert reports
Counsel fees
Specific reports and investigations

Solicitor’s Own Costs

Less commonly covered:

Some ATE policies cover own-side costs
But CFA typically waives these on loss anyway
Specific overlap with CFA
Policy terms vary

Specific Exclusions

Wasted costs orders against client
Fundamentally dishonest claims
Claims discontinued unreasonably
Specific behavioural exclusions

When ATE Is Needed

The QOCS Impact

Qualified One-Way Costs Shifting (2013):

Claimant typically not liable for defendant costs if case lost
Specific exceptions (fundamental dishonesty, Part 36)
Substantially reduces need for ATE
But ATE still needed in some situations

When ATE Still Required

Cases where QOCS doesn’t apply
Disbursement protection
Specific procedural protection
Some defendant interim costs orders

Case-by-Case Assessment

Specialist solicitors assess:

Specific case type
Risk profile
Claimant’s personal exposure
Cost vs benefit of ATE

ATE Premium

How Premium Is Calculated

ATE premiums depend on:

Risk profile of the case
Coverage limit chosen
Specific insurer rates
Type of case

Typical UK Premiums

Variable by case type:

RTA cases — typically £100-£500
Workplace cases — typically £200-£1,000
Complex cases — typically £500-£3,000+
Catastrophic cases — substantially higher

Premium Structures

Different premium types:

Staged premiums — increase as case progresses
Flat premiums — fixed throughout
Self-insuring premiums — paid only on success
Specific terms vary

Premium Recovery Pre-LASPO vs Post-LASPO

Major change in 2013:

Pre-LASPO (before April 2013) — premium recoverable from defendant
Post-LASPO — premium typically deducted from claimant damages
Specific exceptions for clinical negligence (with respect to expert reports)
Substantial impact on net compensation

QOCS — Qualified One-Way Costs Shifting

What QOCS Does

Specific protection for PI claimants since 2013:

Defendants generally cannot recover costs from claimants in PI cases
Even if claim fails
Specific exceptions apply
Substantial reduction in ATE need

QOCS Exceptions

Where QOCS doesn’t apply:

Fundamental dishonesty in the claim
Failure to beat defendant’s Part 36 offer
Claim struck out for abuse of process
Some specific case types

Practical Effect

For most PI claimants:

QOCS provides substantial protection
ATE may still be needed for disbursements
Specific costs analysis
Reduced overall premium typically

Disbursement Protection

QOCS doesn’t cover:

Claimant’s own disbursements (court fees, experts)
These remain claimant’s responsibility
ATE typically covers if case lost
Specific structure varies

How ATE Integrates with CFA

Combined Funding Package

CFA + ATE provides:

CFA — solicitor fees protection
ATE — adverse costs and disbursement protection
QOCS — additional defendant cost protection
Comprehensive claimant protection

Premium Payment Timing

Typical structures:

No payment if case lost
Premium deducted from damages on win
Specific timing in policy terms

Net Compensation Impact

Premium reduces net compensation:

Typically £100-£3,000 deduction
On top of success fee (25% cap)
Specialist solicitors should explain full deductions
Specific cases — minimal impact

Choosing ATE Providers

Major UK ATE Providers

Allianz Litigation Funding
Litigation Recovery Services
Various specialist providers
Different terms and pricing

Solicitor Selection

Typically:

Solicitor recommends specific ATE provider
Has working relationship with provider
Familiar with terms and process
Client should review proposed terms

Client Right to Choose

Right to question proposed ATE
Right to seek alternatives in some cases
Specific solicitor recommendations typically valid
Consumer protection rules apply

Specific Case Types

Whiplash Reform Cases

Under OIC portal for small RTA whiplash:

No ATE typically needed for portal cases
Specific procedural protection
Small claims limits
Reduced legal costs framework

Standard Personal Injury

Most standard cases:

ATE typically arranged
QOCS provides primary protection
ATE covers disbursements
Specific terms by case

Industrial Disease

Specific considerations:

Often substantial disbursements
ATE particularly important
Specific expert evidence costs
Multiple defendant complications

Catastrophic Injury

High-value cases:

Substantial ATE coverage needed
Premium proportionate but typically modest as percentage
Specialist arrangements
Specific structures

Medical Negligence

Specific framework:

Substantial disbursement costs (expert reports)
Specific exception — expert report ATE recoverable
Different premium structures
Higher complexity

ATE Disclosure Requirements

What You Should Be Told

Solicitors must explain:

Whether ATE is being arranged
Premium amount or how calculated
When premium is paid
What ATE covers and doesn’t cover
Alternative funding options

Specific Questions to Ask

What is the expected premium?
When is the premium paid?
What does ATE cover specifically?
Are there exclusions I should know about?
How does this affect my net compensation?

Common Defences for ATE

Defendant Challenges

Defendants sometimes challenge:

ATE premium reasonableness (where recoverable)
Specific premium structures
Case-by-case challenge possible
Specialist solicitors prepared for challenges

Common Questions About ATE Insurance

Do I really need ATE if I have QOCS protection?

Often still useful. QOCS protects against defendant’s costs in PI cases, but it doesn’t cover your own disbursements (court fees, expert reports). If your case fails, you may still need to pay these costs. ATE typically covers them. The premium is typically modest given the substantial disbursements at risk. Specialist solicitors assess case-by-case whether ATE is needed. For most personal injury cases, ATE remains valuable protection — though premium structures have reduced post-LASPO.

Will ATE be deducted from my damages?

Yes, in most modern UK PI cases. Pre-LASPO 2012, ATE premiums were typically recoverable from defendants. Post-LASPO, premiums are typically deducted from claimant damages. Exception: clinical negligence cases retain limited premium recovery for expert report ATE. Standard PI claims see premiums of £100-£3,000 deducted from damages. Combined with success fee (capped at 25%), this means net compensation is meaningfully less than gross damages — but ATE provides substantial protection.

How much will my ATE cost?

Variable by case type:

Simple RTA claims — typically £100-£500
Workplace claims — typically £200-£1,000
Industrial disease claims — typically £500-£3,000+
Complex/catastrophic claims — substantially higher (but typically smaller percentage of total)

Specialist solicitors should provide specific quotes. Premium is typically modest given the protection provided.

What happens if I don’t buy ATE and I lose?

You face the costs personally. Without ATE, if your case fails:

You owe your own disbursements (court fees, expert reports)
These can be substantial (£1,000-£10,000+)
Some defendant costs in QOCS exception cases
Personal financial exposure

For this reason, most PI claimants arrange ATE despite the premium cost. The protection is substantial and the premium is typically only paid on success.

Can I get ATE from any provider, or only my solicitor’s recommendation?

Theoretically you can choose, practically usually use solicitor’s recommendation. Most UK PI ATE is arranged through solicitor-provider relationships. Some specialist firms offer alternatives. The market is relatively concentrated with specific providers dominating. For most claimants, solicitor recommendations work efficiently — the firm has experience with the provider’s claims handling. You can question terms and request justification for the specific choice.

What if I have legal expenses insurance from my home or car policy?

Substantial advantage — often better than ATE. Pre-existing legal expenses insurance (BTE) may:

Provide direct legal funding without success fee or ATE deduction
No premium deducted from your damages
Specific coverage limits but often substantial
Net compensation typically higher

Solicitors must ask about LEI before recommending CFA+ATE. If you have LEI cover, this is usually the better route. Always check your home and motor policies before engaging a CFA.

No Win No Fee Personal Injury Solicitors UK

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What Fee Do Personal Injury Solicitors Take?

Solicitor vs Claims Management Company

How Long Does a PI Claim Take?

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