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After the Event Insurance FAQ

After the Event Insurance FAQ

Below we have compiled a list of what we have found to be the most frequently asked questions in regards to the business of After The Event Insurance.

Whilst we have sought to cover all topics considered relevant to an understanding of the subject matter, we would be pleased to hear from you if would like to expand this resource. Just visit the Contact page of this website to get in touch.

What is After the Event Insurance (ATE)?
ATE Insurance covers the client’s exposure to legal costs in the event that their case is unsuccessful. A ClaimSafe policy will insure all of the Solicitor’s clients’ disbursements including the ATE insurance premium, Counsel’s fees, and the Defendant’s costs and disbursements (or ‘adverse costs’), where applicable.
What does ATE Insurance cost?
As with any insurance, the insured must pay a premium. ClaimSafe offers a variety of ATE premiums which is linked to the extent of financial cover required and the type of dispute involved. All ClaimSafe premiums are highly competitive and are in line with the market rate for similar ATE cover.
What types of cases are suitable for ATE Insurance?
ATE insurance is available for all types of cases except family law, criminal cases and employment tribunal claims.

ClaimSafe offers ATE policies for the following types of disputes:

Road traffic accidents
Accidents at work
Industrial disease
Slips and trips
PIP claims
Hip replacement claims
Payment protection claims
Clinical negligence
Occupiers liability
Accidents caused by Animals
PPI Claims

ClaimSafe ATE insurance is available for all types of Personal Injury cases, and there normally is no requirement to show reasonable prospects of success prior to obtaining an ATE policy. Should it later transpire that prospects are below 50%, the Solicitor is entitled to cancel the policy, without paying a fee.
What is Box Legal’s presence in the After the Event Insurance marketplace?
Box Legal deals with approximately 15% of all personal injury After the Event Insurance policies in the UK and has approximately 200 solicitor firms on its panel.
At what point should a party to a dispute consider ATE insurance?
ClaimSafe ATE insurance is available at any time after a dispute has arisen up to the determination of the trial. The earlier you apply for ATE insurance the better the terms are likely to be and the cost of the premium will reflect this.
When is the premium payable?
ClaimSafe ATE premiums are normally deferred and are contingent upon success, this means that the policyholder only pays the premium at the end of the case and only if the case is successful. There is no premium to pay if the case is ultimately unsuccessful.

Is there any assessment fee or joining fee for using Box Legal to administer the ATE Insurance policy?
No, Box Legal Limited acts as the Solicitor’s agent in administering the ATE policies with Leeward. The assessment by the underwriters is completely free and we do not charge any fee for joining the scheme.

Solicitors wishing to use ClaimSafe ATE insurance need to join the Box Legal panel; and whilst there is no joining fee, there is a requirement that panel firms issue a minimum of around 10 ATE policies a month.

Requesting an ATE Policy couldn’t be easier. Complete a short form on the Box Legal website, which will then be sent to the insurer. An insurance certificate will be emailed to you within the next 24 hours. No further questions are normally asked.

Acting as the Solicitor’s agent, we are able to advise you in regards to the correct choice of policy and the level of cover required for particular types of dispute.
Do we offer disbursement funding?
Unfortunately, we do not currently offer disbursement funding but our ATE Insurance premium is not payable until the end of the case when costs have been paid.
How frequent are the reporting requirements?
One advantage of the ClaimSafe ATE Insurance scheme is that, the insurer, considers that the solicitors acting on a claim are best placed to run the claim and make decisions. They have the advantage of their own expertise, and the relevant facts available to them. The insurer operates a scheme, with minimal reporting requirements. In most circumstances, the only 2 reporting requirements are:

1. To inform the insurer when Court Proceedings have been issued.
2. To advise when legal costs have been recovered.
What is a 'Hold Harmless' After the Event Insurance policy?
A Hold Harmless ATE Insurance policy is a policy issued by an unscrupulous ATE insurer which appears to be an After the Event insurance policy but in fact is a worthless piece of paper. The solicitor has agreed with the insurer not to make claims on the policies in return for a large commission. Such policies are in our opinion illegal and a fraud on clients and defendant insurers.
What happens if a Part 36 Offer is made?
The decision to make or reject offers can be made without reference to the insurer.
What happens if we have more than one opponent?
ClaimSafe ATE offers a variety of schemes and the policies can cover multiple Defendants. If need be the level of indemnity required can be extended up to a maximum if £125,000.
What happens if we fail to beat a Part 36 offer?
The ClaimSafe ATE Insurance policy provides full Part 36 cover, meaning that if you fail to beat a Part 36 offer, the insurer will pay claims for adverse costs arising from the same, unless the client has ignored your advice to accept an offer.
Do you provide legal support and if so, how much does it cost?
Yes we provide full legal support from our team of solicitors, all of whom have worked in private practice. There is no charge for this service.
How did policies change after the Jackson Reforms in April 2013?
All “pre-Jackson” policies remained in force and payable by the defendant. “Post Jackson” policies are payable by the client out of their damages if they win their claim and only at the end of their case. ClaimSafe policy premiums were reduced after April 2013 to reflect the insurer’s reduced risk.
How long does an application for ATE Insurance Take?
The ClaimSafe policy does not involve long application forms. The policy is based around “keeping it simple”. All applications are on-line or via your case management system and involve completing just a handful of basic details. If you are a reasonable typist, it will take less than a minute to apply.
Is there a charge for applying for ATE Insurance Cover?
No - we do not charge for you to apply for cover. Some other ATE Insurers do charge.
Do you insure Clinical Negligence Claims?
Yes - the insurer has launched a new Clinical Negligence After the Event Insurance policy which is uniquely simple to apply for and administer. Most ATE Insurers require solicitors to make long applications for Clin Neg cover but our ATE Policies are very straightforward to obtain.
How long will an After the Event Insurance Policy Last?
It is rare for an ATE insurance policy to be limited in time - normally they will cover a claim until the claim is concluded (including any arguments about legal costs). This could be many years from when the policy was taken out. You should however check your ATE insurance to ensure that it is not limited in this way.
Are Clinical Negligence Claim ATE policies recoverable from the Defendant?
Now that the Jackson reforms have come in, general ATE insurance premiums have to be paid by clients out of their damages (they get a 10% increase to do this). The exception is an ATE Insurance policy for Clinical or Medical Negligence claims which covers the initial costs of investigating liability before proceedings are issued. This policy has to be paid by the defendant if the case is successful. The policy does not cover other risks such as other disbursements or the risk of not beating a Part 36 offer. This means that Clinical Negligence claims now need 2 policies - a recoverable one and a normal adverse costs policy.
Is the After the Event Insurance Premium payable if you lose?
No - all of the ClaimSafe premiums including the new ones Post-Jackson are self insured. This means, if you lose your claim, you do not have to pay for the policy. If you win, it is only payable once your client's damages have been paid.
What if my client does not want to pay a fixed premium but one linked to the amount of damages he obtains?
We arrange a complete menu of prices for firms including a premium expressed as a percentage of the client's damages. These policies are particular popular for financial mis-selling claims. Ask for a copy of our e-brochure to see all of the options available.

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