ATE Insurance and Allianz Litigation Funding – a winning combination
Due to the prohibitive costs of court proceedings in the UK a relatively recent type of insurance has developed – After-the-event (ATE) insurance.
Usually ATE covers
- opponent's costs in case of a complete loss
- own disbursements (including counsel's fees)
- and potentially the premium itself,
i.e. the ATE insurer will pay for all these costs if the is case lost in its entirety.
ATE is certainly an improvement compared to having to bear the risk of litigation on one's own. But until now there are still relevant shortfalls such as:
- ATE premiums are considerable and can equate to a third of the amount of the indemnity sought; payment of the premium is not always deferred until the end of the proceedings;
- ATE is merely an insurance product, i.e. it minimises the risks of litigation if the case is lost and the Claimant has to pay the costs of the proceedings; but it does not in general provide the Claimant with sufficient funds to take the case forward in the first place. More often than not funds are required upfront to pay one or all of these relevant costs: solicitor's fees, counsel's fees, expert's fees. ATE insurance does not help in this situation.
- If the court orders the Claimant to provide security for the defendant's costs then ATE does not help either; if the Claimant does not have sufficient funds then a claim is easily stifled by such an order.
This is where litigation funding and ATE insurance offer a unique combination that minimises the risk of litigation and provides the required funds to see a case through to trial. Allianz Litigation Funding will not only provide upfront funding but also pay the ATE premiums thus providing the Claimant with funds to get and keep the case going but also make sure there is insurance cover in the unlikely event that the case is dismissed.
The ATE insurer will carry out an independent review of the case and within a reasonable period of time let you know whether the case is eligible for ATE cover and provide you with an indication of terms.
Please note that both ATE insurers and brokers are separate legal entities and do not form part of the Allianz group of companies. However, you may be able to secure after-the-event adverse costs insurance from Allianz Legal Protection, a UK based ATE provider.
Allianz Litigation Funding provides maximum security for a Claimant: we make sure he has the means to take the case forward and minimise the financial risk of a lost claim by putting ATE insurance cover in place – that is what we call a winning combination!
