Solicitors have a duty to discuss with their clients how and when costs are to be met, and whether a client’s liability for their own or other parties’ costs may be insured. This note aims to explain what after the event (ATE) insurance is; the circumstances in which it is available; how to deal with insurance companies; and the procedural requirements. It concludes with a list of the principal advantages and disadvantages of ATE insurance to a client.

On 1 April 2013, the majority of the Jackson/civil litigation reforms came into force. As a result of these changes, where the ATE policy is entered into on or after 1 April 2013, the ATE premium will no longer be recoverable from the other side, save in excepted cases. For a summary of ATE insurance in the excepted cases, see Practice note: After the event insurance (for policies taken out before 1 April 2013 and in the excepted cases).