top of page

Common ATE Questions, Answered (FAQs)

Updated: Nov 29, 2024


The litigation insurance landscape can be complex, in particular that of ATE insurance. Here is a series of Q&As to some of the most commonly asked questions about after-the-event (ATE) insurance.


What are the main types of After-the Event (ATE) insurance premiums/fees?


Paid or Upfront premium:


Payable on inception of the ATE policy or at key stages throughout the litigation. This type of premium once paid is normally non-refundable.


Supplemental Premium: 


A one stage premium which is only payable if a case or group of cases is successful


Contingent Premium:


A multi stage premium discounted at key stages in the litigation and only payable if the case is successful.


Deed/Anti-Avoidance Endorsement Fee:


A fee payable to the relevant insurer for issuing a Deed of Indemnity or Endorsement. The fee is generally only payable when the Deed or AEE has been accepted as security by the defendant or court.



What is an After-the Event (ATE) insurance Portfolio Policy for law firms?


A portfolio insurance policy for a law firm provides comprehensive coverage for a group of cases a law firm is handling on behalf of clients. The firm takes out a single insurance policy that covers a selection of cases. 


What is an Anti-Avoidance Endorsement (AEE) in the context of an After-the Event (ATE) insurance policy?


An Anti-Avoidance Endorsement (AEE) is an endorsement to an existing After-The-Event (ATE) insurance policy. The AAE protects the defendant(s) by indemnifying the legal costs incurred by them if there is a successful defence to the legal action and the defendant is awarded costs. Depending on the wording of the AAE, it typically gives the defendant(s) a direct legal route to enforce the indemnity.


AEEs are used in jurisdictions such as the UK and Australia to fulfill security for costs obligations. This serves as a potential alternative to the more conventional methods of providing security for costs. 



What is a Deed of Indemnity (“DOI”) in commercial litigation?


A Deed of Indemnity is a supplementary agreement to an After the Event (ATE) insurance policy, established between the ATE insurer and the defendant in a legal action. In this agreement, the ATE insurer commits to indemnifying the defendant's legal costs up to a predetermined limit if the defendant successfully defends the legal action and is awarded costs. The fee for the deed is paid by the plaintiff (or litigation funder). A DOI is a potential alternative to traditional methods of providing security for costs. 





 
 
 

Comments


Contact

Follow

Level 24, Three International Towers, 300 Barangaroo Avenue, Sydney NSW 2000

  • LinkedIn

Telephone
+61 2 8067 8320

New Enquiries:
info@vielegalinsurance.com.au

Connect

Sign up to get the latest Vie news and insights

ANZIIF Finalist 2023 Badge
Steadfast logo

Vie Legal Insurance Pty Ltd, whose registered office is at Level 24, Three International Towers, 300 Barangaroo Avenue, Sydney NSW 2000 (AFS Representative Number 1263727) is an Authorised Representative of United Insurance Group Pty Ltd (“UIG”) (Licence Number 327131).

UIG are authorised and regulated by the Australian Prudential Regulation Authority. UIG is part of the Steadfast Group, which is Australia’s largest Insurance Broker Cluster Group.

bottom of page