Insurance against the adverse cost risk in litigation/arbitration taken out after the event, i.e. after the claim has arisen
Currently the premium may be deferred and contingent, i.e. deferred to the end of the claim and contingent on winning the case – as the premium is then recoverable from the losing party. However, assuming the Legal Aid, Sentencing and Punishment of Offenders Bill becomes law, English courts will no longer view premiums as recoverable and they will, therefore, have to be paid by the insured in any event. It remains to be seen what effect this will have on the ATE insurance market generally
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