Jurisdiction(s):
United Kingdom

ATE insurance in insolvency litigation: coverage, premium options, timing, IDD compliance, security for costs (AAE and deeds of indemnity), multiple defendants, funding interaction and market overview

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

$imgtext$

What is After-the-Event insurance?

In litigation, the losing side is usually ordered to meet part of the winner’s legal costs (known as adverse costs). This creates particular difficulties for insolvency practitioners (IPs) who, when pursuing claims, face potential cost exposure and, without creditors’ consent, often have little or no practical recourse to the insolvent estate to satisfy any adverse costs liability. After-the-Event (ATE) insurance exists to address this risk: if an IP advances a claim that ultimately fails, the ATE insurer will pay the adverse costs as a claim under the policy, normally up to a fixed limit and subject to the policy’s terms and conditions.

What will ATE insurance cover?

The primary role of ATE insurance is to insure against adverse costs. Cover can also be taken for the risk of not recovering one’s own disbursements, including expert reports, valuations and search fees. Although an insured party’s own counsel’s fees are not typically covered, there is scope for inclusion in some cases. For instance, if counsel is engaged under a conditional fee agreement, the policy may cover a proportion of their work in progress...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Sanjay Desai

Marsh

• Qualified solicitor• Started in law as costs draftsman so understanding insurance / funding arrangements was day 1 of legal career• Worked for high profile organisations such as Harbour • Currently head litigation risk practice at largest broker in the world• Pride myself on offering a fully advisory service on ALL options available to de-risk disputes• Work on mandates across all jurisdicitons• Placed solutions for both claimants and defendants alike• Proven track record of creating and implementing innovative solution• Regularly advise litigants, IP’s and lawyers on alternatives to litigation funding...

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...