ATE Insurance Cost
ATE Insurance Cost
An ATE Insurance Policy can cost from £30 right up to £1m+ for certain disputes.
ATE insurance costs will be lowest for more predictable lower value claims such as motor RTA accidents, where premiums of between £30 - £300 are common.
More complicated disputes such as EL & PL would have an ATE insurance cost of circa £250 - £500, whereas clinical negligence disputes could have a total ATE insurance cost of £5,000 or more.
Large commercial legal disputes can command an ATE insurance cost of anything up to several million pounds each.
If you’re currently looking into After The Event (ATE) insurance, it’s sensible to research the costs involved as a first step in the litigation process. Applying for commercial ATE cover will be a worthwhile investment, as its key purpose is to protect you from the legal costs and expenses and fees that may result from a legal dispute or court case, which can become very expensive. Checking out the ATE market, and having a good idea of what your ATE insurance will cost beforehand will save you from any surprises later on.
So, how much will you be expected to pay for After The Event Insurance?
The following will help you discover a little more about the costs involved and the various means by which you can pay for an ATE insurance policy.
As with most other forms of insurance, the premiums depend on the specific facts surrounding your circumstances and the facts of the legal dispute. This means that you’ll need to discuss everything in fine detail with your insurance broker or advisor before being quoted an exact price. However, there are a number of different pricing models available that are likely to impact the amount you will pay in total, that you should be aware of.
The Payment Process
When it comes to After The Event Insurance, there are several ways in which you can pay the premium. Here’s a quick selection of the main ones, and how they may or may not benefit your particular requirements:
The Staged ATE Premium
This is a payment schedule that involves the relevant costs rising as your case moves on. The final amount you pay will depend upon the stage at which the case eventually concludes. Typically, you’ll need to pay around ten percent of the total cover (ROL) you’re seeking for matters arising pre-issue, while post-issue you’d be expected to pay anywhere between twenty five and sixty percent of the ROL, with the case type and potential length of the case also taken into account.
The Fixed ATE Premium
This is an approach that many individuals and businesses find beneficial if they think their legal dispute is likely to go to court and run for a reasonable amount of time. A fixed premium means that the amount charged will be the final amount paid, however long proceedings last, and where it ends in the legal process. The risk with this pricing model is that if the case is settled just after proceedings are issued, it’s likely that you will have spent more on your premium than you needed to, but hindsight is a wonderful thing!
A Percentage of Damages
If you opt for this pricing model, you can also decide whether you’d like it to be arranged on a staged or fixed basis.
Choosing the “percentage of damages” option is becoming ever more popular, as the exact costs required for your premium can be calculated according to the damages to be recovered.
How Can I Ensure I’m Not Paying Too Much?
To take control of your ATE premium, you can firstly choose which of the above pricing models suit your legal case and your situation the best. However, there are a couple more approaches that will also help you. It’s definitely worthwhile to apply for After The Event Insurance as soon as you are made aware that you could be involved in a legal dispute, as applying late often means that this cover is harder or more expensive to secure, and that any costs that have already been incurred may not be covered. You can also choose when your premium is paid, as this will again offer you a few more options to save money on premiums depending on your individual dispute.
ATE Premium In Full, Up Front
If you arrange for this type of payment, you won’t run up against any extra charges afterwards – meaning that, usually, you could save a considerable amount of money on your ATE premium. The only drawback is that you will not be able to recover this fee if you lose your case.
ATE Premium Deposit Up Front, Full Payment Deferred
If you decide to use this method of payment, you can usually work out a no win, no fee deal whereby your deposit – paid at the start of proceedings – costs between ten and twenty percent of the full amount and is non-refundable, but the remainder will not be paid until the case is settled, and not at all if you lose your legal dispute.
ATE Premium Full Premium Deferred
This is perhaps the most popular for many firms as there is no outlay required upfront, and you only need to pay the premium if you win. This method is usually the most expensive, as the insurer will aim to re-coupe its lost income, and risk of getting nothing back at all if the cases loses.