Members of the Public

What is After-The-Event (ATE) Insurance?

After-The-Event (ATE) insurance is a form of legal expenses insurance that can be put in place after a legal dispute has arisen. Its primary purpose is to protect you from the financial risk of litigation if your case is unsuccessful. In simple terms, ATE insurance can cover your liability to pay your opponent’s legal costs, as well as certain disbursements incurred during the case, helping ensure that you are not left with an unaffordable bill if the case does not succeed.

ATE insurance is arranged through your solicitor. Your solicitor will provide the insurer with details of the case so that the legal merits and costs risks can be assessed. There is no obligation to proceed simply because an application is made, and the assessment process is typically carried out at no cost to you.

Common FAQs

Some of the key questions about ATE Insurance.

Who is ATE Insurance for?

ATE insurance is suitable for individuals and businesses who are:

Bringing or defending civil proceedings in the Irish courts.
Concerned about the risk of paying the other side’s legal costs if the case is lost; or
Pursuing a meritorious claim but do not wish to expose themselves to significant financial uncertainty.

ATE insurance is commonly used in personal injury, medical negligence, professional negligence, commercial disputes, insolvency-related claims, and other civil litigation.

How Does ATE Insurance Help You?

ATE insurance offers several important protections and benefits:

Protection from adverse costs: If your case is unsuccessful, the policy can cover the legal costs you may be ordered to pay to your opponent.
Peace of mind: Knowing that the financial risk of litigation is insured allows you to focus on the merits of your case rather than the potential cost consequences.
Access to justice: ATE insurance can make it possible to pursue a valid claim that might otherwise be too risky or expensive to bring.
Incentive to settle: The existence of ATE insurance can encourage earlier and more realistic settlement discussions, as an independent insurer has assessed and supported the case.

When is ATE Insurance Taken Out?

ATE insurance is taken out after a dispute has arisen, usually once legal proceedings are being considered or have already been issued. It can be arranged at different stages of a case, although it is generally easier and more cost-effective to obtain earlier in the litigation process, when the risk profile is lower.

How Much Does ATE Insurance Cost?

The premium for ATE insurance is typically deferred, meaning:

There is usually nothing to pay upfront.
The premium only becomes payable if the case is successful.
If the case is unsuccessful, the premium is normally self-insured and not payable by you.

The level of the premium depends on factors such as the stage of the proceedings, the value of the claim, the likely costs exposure, and the assessed prospects of success.

How Do I Obtain ATE Insurance?

Important Information

ATE insurance does not replace legal advice and does not determine whether you should pursue or defend a claim. It is a risk management tool designed to protect you from adverse costs exposure. The availability and terms of cover will always depend on the individual circumstances of your case and the insurer’s underwriting assessment.

If you are considering litigation and are concerned about costs, you should speak to your solicitor about whether ATE insurance may be appropriate for you.