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After the Event (ATE) insurance can be taken out to cover legal costs and expenses in any litigation or claim dispute. In this article, we look at how ATE is used in personal injury compensation, and how such cover provides a safety net to people looking to make a claim.
Claimants can be charged various solicitor or defendant costs if their claim fails. Therefore, having suitable ATE insurance cover in place can guarantee that you pay no cost whatsoever to any party if your claim fails, and as the cost of any ATE premium is only paid if you win your claim, taking out such cover is a no-brainer.
When should ATE insurance be purchased?
As the name suggests, ATE insurance is purchased after an accident has happened and when a claim for personal injury compensation begins. Taking out an ATE insurance policy will guarantee that the claimant never has the personal responsibility of having to pay costs should their claim fail to succeed.
Your ATE cover requirements will be identified by our specialist solicitors at the outset of your claim. This will happen when the solicitor agrees that you have a viable claim that should be pursued. They may advise that you have no requirement to purchase ATE cover if you already have existing Before the Event (BTE) or Legal Expenses Insurance (LEI) cover in place.
Such cover can often be found attached to home and contents insurance, motor insurance, trade union membership and financial products such as credit cards and loans. Where possible, you can use any cover that you already have in place. In cases where there is no existing BTE or LEI, our solicitors will recommend a suitable ATE insurance policy for your claim.
Who pays the cost and when?
Simply put, you only pay for ATE insurance if and when you win your claim. At the outset of a claim, it is the solicitor who will purchase an ATE insurance policy on behalf of the claimant if they do not already have a suitable alternative BTE or LEI cover in place.
With Direct2Compensation, no claimant pays any upfront cost for ATE insurance cover and nor will they have to pay if their claim fails to succeed.
As a result of the LASPO Act 2012, successful claimants who win their claim for personal injury compensation can no longer charge the cost of their ATE premium to the losing side. Instead, it is deducted from any settlement awarded when a claim succeeds.
How much does ATE cover cost?
As the vast majority of ATE insurance cover will be obtained at the outset of the claims process, standard policies with various cover are available for different types of personal injury claims. Whilst each case needs to be decided on merit, our specialist solicitors can usually identify what level of cover your are likely to require when they first discuss your claim with you.
The level of cover required will vary depending on the kind of claim you are wishing to pursue. In less risky claims, such as a straightforward road traffic accidents where you are unlikely to lose, your solicitor may even recommend not taking out ATE insurance at all. However, if they do, premiums for such cover can start at around £100. In more risky claims, cover can become more expensive as the likelihood of the claim failing increases. In such cases, ATE premiums can be as little as £250, but as much as £440.
Remember, you will never have to pay any upfront cost for ATE insurance cover if your solicitor recommends you require it. With Direct2Compensation, any deductions from your settlement are minimised and as such, the most cost effective policy for your personal injury claim will be purchased. In cases where ATE premiums are higher, the potential compensation settlement awarded is likely to be far higher as well. Therefore, the ATE premium will only form a small percentage of your entire settlement and represent good value for money.