How does ATE insurance support professional negligence claims?

After the event (ATE) insurance can play an important role in allowing professional negligence claims to proceed. It’s particularly beneficial when the financial risks of bringing a case would otherwise be problematic for the claimants and their legal representatives.

For both individuals and companies seeking to take action against professional advisors, ATE cover can offer access to justice that might not otherwise be possible.

Removing the financial barriers to litigation

ATE insurance has the effect of altering the risk profile for claimants. If the case succeeds, the premium is paid from the damages. If it fails, the claimant solicitor is protected from the other side's legal costs and their own disbursements. This supports claimants who would otherwise be deterred by the threat of losing and facing a hefty bill.

Partnering with the ATE insurer can lead to better outcomes

Insurers need and expect full transparency from their solicitor partners. Weaknesses in a case aren't a red flag if they are disclosed with a plan for how they will be addressed. In fact, being upfront about potential challenges can enhance an application, demonstrating strategic thinking. Concealing material facts, on the other hand, can invalidate cover and leave claimants exposed.

Completing the ATE insurance forms is the starting point. But providing supporting material or commentary, where relevant, can often give an important level of insight. Close working relationships between law firms and ATE insurers can help a solicitor to refine strategy, identify gaps, and potentially improve the outcome of a case.

ATE can shift the litigation dynamic

In professional negligence cases, especially those involving individual claimants or small businesses, notifying the defendant that ATE cover has been secured can be a strong tactical move. It says that the claim has been independently assessed and backed by a third-party insurer. For defendants, this confirmation can accelerate settlement discussions or change the tone of negotiations.

ATE insurance in professional negligence is a partnership between the insurer and solicitor. This partnership is built on transparency and trust. Full disclosure, early engagement, and ongoing dialogue between legal teams and insurers will drive stronger outcomes for all parties.

By shifting the financial dynamics of litigation, ATE helps level the playing field in professional negligence claims. It also ensures the strongest cases are heard, regardless of the claimant’s resources.