After the event (ATE) insurance for personal injury claims

If a solicitor has mentioned ATE insurance during your no win no fee discussion and you are unsure what it means or whether you need it, this guide explains the basics in plain English. We are an independent information service, not a law firm or insurer.

What is ATE insurance?

ATE stands for "after the event" — meaning the policy is arranged after the accident or incident that gives rise to your claim. (This distinguishes it from "before the event" or BTE cover, which you may already have as part of a home, motor or legal expenses policy.) ATE is a form of litigation insurance: it pays specified costs if your claim is unsuccessful.

In a typical no win no fee arrangement, your solicitor works under a conditional fee agreement (CFA), meaning you pay no solicitor's fees if you lose. But a CFA does not cover disbursements — the out-of-pocket expenses incurred during your claim, such as:

• Medical report and expert witness fees
• Court issue fees
• Police or medical record access fees
• Barrister's fees (in some structures)

ATE insurance covers these costs if your claim fails, so you are not left out of pocket.

How QOCS changed the picture

Before April 2013, a losing claimant could be ordered to pay the winning defendant's legal costs — potentially tens of thousands of pounds. ATE insurance was essential to cover that risk, and the premium could be recovered from the defendant if you won.

The Jackson reforms (implemented by the Legal Aid, Sentencing and Punishment of Offenders Act 2012, known as LASPO) changed this in two key ways:

QOCS means most personal injury claimants no longer face an adverse costs order from the defendant. But QOCS does not cover your own side's disbursements, and QOCS protection can be lost in certain circumstances.

When do you still need ATE?

Even under QOCS, ATE insurance serves several purposes:

• Disbursement protection. If your claim fails, medical reports and court fees already paid are lost. ATE reimburses them.
• Fundamental dishonesty. If the court finds a claim was fundamentally dishonest under CPR 44.16, QOCS is disapplied entirely and you become liable for the defendant's costs. ATE covers this risk (provided you were honest — most policies exclude fraud).
• Part 36 costs consequences. If you fail to beat a Part 36 offer, you can be liable for the defendant's costs from the date of the relevant period's expiry. ATE can cover this exposure.
• Mixed claims. If your claim includes causes of action that are not personal injury (for example, a contractual dispute alongside an injury claim), QOCS may not protect the non-PI element.
• Clinical negligence. Expert report costs in clinical negligence claims are high, and the ATE premium for those reports remains recoverable from the defendant under LASPO section 58C. This is the main surviving exception.

How much does ATE cost and who pays?

ATE premiums vary by claim type, complexity and value. Most modern ATE policies use a deferred and self-insuring premium:

• You pay nothing upfront.
• If your claim succeeds, the premium is deducted from your compensation (alongside your solicitor's success fee).
• If your claim fails, the insurer pays out and you owe no premium.

Your solicitor must explain the likely ATE premium before you sign any agreement, as it affects your net compensation. Since LASPO, the premium is normally not recoverable from the defendant (except in clinical negligence expert-report situations), so it comes from your damages.

Choosing an ATE policy

Your solicitor typically selects and arranges the ATE policy. Key points to check or ask about:

• Policy limit — does it cover the full range of disbursements and potential adverse costs?
• Exclusions — fraud and dishonesty are always excluded, but check for other conditions.
• Stage premiums — some policies have stepped premiums that increase as the claim progresses (for example, a higher premium if the case goes to trial).
• Insurer rating — ensure the insurer is FCA-authorised and financially sound.

The clinical negligence exception

Clinical negligence claims are the one area where ATE premiums for expert medical reports can still be recovered from the defendant, under section 58C of the Courts and Legal Services Act 1990 (as amended by LASPO). This is because clinical negligence cases require expensive expert evidence to establish liability, and without recoverable ATE, many meritorious claims would be unviable.

If you are pursuing a medical or clinical negligence claim, ask your solicitor to explain which part of the ATE premium is recoverable and which is not.

Frequently asked questions

Related guides: no win no fee explained, conditional fee agreements, Part 36 offers, dealing with insurance companies, and medical negligence claims.