THE COST? - ATE INSURANCE
As the name suggests, an after the event insurance policy is one that is taken out after the accident or injury in question. It covers all or some of the claimant’s potential liabilities in the event of the claim being unsuccessful.
Most claims are settled without going to court but if court action is raised in connection with your claim and you lose, you will have four potential heads of liability:-
- your opponent’s legal fees
- your opponent’s other expenses
- your own expenses (other than legal fees)
- your own legal fees
In its most basic form, after the event insurance would cover numbers 1 and 2 above. Most people, however, opt to cover number 3 as well (and it’s worth noting that, in any event, most ATE insurance policies are written in such a way that the premium for cover does not have to be paid if the claim is unsuccessful).
In some cases, it is possible to extend after the event insurance cover to include no 4 too but that wouldn’t be necessary if your solicitor was acting for you under a no win no fee agreement (because your solicitor would not be entitled to a fee if your claim failed).
If a compensation claim is won in Scotland or in England, the ATE insurance premium does need to be paid but, in England (unlike in Scotland which has different rules), the winner can recover it from the losing party. In Scotland, the winner simply has to bear the cost of taking out that insurance cover. Again, this is one of the reasons why claims by English-based companies that “you keep 100% of your compensation, whatever happens” rarely hold true in Scotland.
If you’re unsure which is the appropriate funding arrangement for your accident compensation claim in Scotland, call us now on 08448 700 800 to discuss how we can help or simply fill in the CALL ME box & we’ll ring you. Alternatively, you can start your claim immediately by answering a few simple questions on the CLAIM NOW page and we’ll do the rest.
Remember – Your Scottish compensation claim is best dealt with by Scottish specialists and you won’t pay a penny for our help, whatever happens.