After the Event Insurance (ATE) can be a powerful weapon to have in a litigation scenario. At first glance, clients can find the cost of the premiums to be fairly substantial and could be tempted to continue without a policy. The premium however can often be deferred until the end of your case and made payable only if your case is a success. Here are what we believe to be the main benefits of taking out an ATE policy.
1. Costs – In the circumstance that unfortunately your case is unsuccessful then you could be ordered by the court to pay the opponents legal costs, including solicitor’s fees and disbursements. If you have taken out an appropriate ATE policy, your insurer will cover these costs for you.
2. Validation – In order for your solicitor to request an ATE policy on your behalf from an insurer, they will have carried out full due diligence on your case and concluded it has merit. The insurer will also carry out the work independently and if the two parties agree, this double validation will confirm your case has substance.
3. Power – Any defendant has to be informed when you are supported by an ATE policy which will send a clear message that your case has good prospects and that they will not be able to so easily outmuscle you financially. This could result in an early settlement.
4. Funding – If an ATE policy is in place then third party funders are more willing to provide assistance for your disbursements and fees.
5. Peace of Mind – Litigation can be stressful especially as there can be so much at stake. The confidence that having an ATE policy can bring will help alleviate some of the pressure involved and allow your legal team to proceed with your case without interruption.