After the Event (‘ATE’) Insurance
After the Event Insurance is a relatively new type of insurance in Canada, it protects a lawyers client (usually the claimant, but it could be the defendant in a legal action) when or after that person or entity becomes aware of the need to litigate to protect their interests. The policy covers the client/Insured against what could prove to be substantial costs that the client/Insured will be liable for should the legal action prove unsuccessful. After the Event Litigation Insurance is often considered to be a prudent hedge on the risk of losing a case, regardless of the financial resources of the client.
What does an After the Event Insurance policy cover?
After the Event Insurance Policy covers the Opponent’s Costs (otherwise known as Adverse Cost), but it also covers the Insured’s Disbursements (out of pocket expenses to run the file) including the ATE Insurance premium.
For the right risk, extend to cover the Insured’s Lawyer Own Legal Costs (where the Lawyer is not acting under a Contingent Fee Agreement or similar). The standard cover is for Costs incurred after the inception date of the Policy up to conclusion of the legal action, however (subject to negotiation) the Policy may also cover Costs already incurred prior to the Policy being taken out.