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; the procedural requirements and recoverability of the insurance premium. It concludes with a list of the principal advantages and disadvantages of ATE insurance to a client.

Note that: On 1 April 2013 the majority of the Jackson/civil litigation reforms came into force. As a result of these changes, ATE insurance premiums are no longer recoverable from the other side unless the policy was taken out before 1 April 2013, or it relates to one of the excepted cases.

This note relates to ATE insurance arrangements made before 1 April 2013 and in the excepted cases.