After The Event Insurance Quote
After the Event Insurance Quote
If you are seeking an ATE insurance quote for your commercial legal dispute, then it is worthwhile knowing what to expect, and how you can prepare your case as well as possible, giving you the best chance of firstly getting a quote at all, and secondly, if you do secure a quote, then it is on reasonable terms.
After the Event Insurance Quote Procedure
The first thing you are likely to be asked when you apply for an ATE insurance quote by either an ATE insurance broker or ATE insurer, is to complete an ATE insurance application form.
These application forms can be quite lengthy running from 6 to 12 pages in total and containing quite a bit of detailed information. It is essential that you complete these proposal forms as well and as fully as possible, as this is the key document that ATE underwriters will look at when making their first assessment on your ATE insurance quote for your legal case. A partially completed proposal or a sloppily completed proposal with blanks, question marks and comments such as “don't know” will not pass this stage of the assessment process, and your application for an ATE insurance quote will be declined.
You will also be asked to provide additional information such as a statement or summary of the case, sight of the letter of claim and any reply from the defendant, any pleadings, counsel’s opinion if there is one, giving the prospects of success in a percentage terms (they will want to see minimum prospects of success of 60% or more) and finally they will also ask for any other relevant information such as expert reports or the evidence of the ability of the opponent to satisfy any judgement should an award be made in your favour.
When to apply for an After The Event Insurance Quote
Deciding when to apply for ATE insurance is also an important point, as if you apply too early, you may not have enough information or detail about the case for underwriters to be able to assess the risk properly, so your request will be declined, and you will be asked to come back later when you have more information.
However, if you apply too late, for example just a few months from the trial date, you are also unlikely to secure an ATE insurance quote, as the risks are now extremely high, and the underwriters are unlikely to want to take that level of risk which is effectively 50/50 or gambling as they may see it.
The sweet spot for making an ATE insurance quote application is the earliest point at which you have all the information to be able to complete the proposal form satisfactorily, which is usually either just prior to, or just after proceedings have been issued.
This enables you or your solicitor to be able to confidently state the damages sought, the potential adverse costs risk the insurer is exposed to, the defendants identity, and most of the other questions that are set out in their proposal form, as are essential to secure an ATE insurance quote.
If you do manage to fully complete the proposal form at or near issue, and the prospects of success are 60% or more, and the type of litigation you are involved in is within the underwriters risk appetite, then you should be offered at least one quotation from the market and hopefully maybe two or three, so you can choose which provides the best value for money, or even go back and negotiate on price if you have a really good case with sold merits.
What you will need to provide for an After The Event Insurance Quote
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Fully completed ATE insurance proposal form
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A summary of the legal case
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The letter of claim, and any reply received
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Any pleadings issued
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Counsels’ opinion (with % prospects stated)
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Any other relevant material such as expert reports
What you should look out for with an After The Event Insurance Quote
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What Indemnity limit has been offered?
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Premium structure, flat, staged, discounted, rate online?
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Overall premium / price
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Are premiums paid upfront, deferred or both?
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Are premiums contingent on outcome?
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Financial rating of the insurance Co behind the quotation
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Heads of cover provided. Own disbursements, other sides costs, own counsel’s fees?
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Is the policy wording clear and unambiguous?
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Are any endorsements restrictive?