Which statement best describes After the Event insurance (ATE) in civil litigation?

Which statement best describes After the Event insurance (ATE) in civil litigation?

• A. It guarantees damages will be recovered
• B. It is a replacement for the CFA
• C. It covers potential disbursements and adverse costs if the claim fails
• D. It ensures the client will win the case

Answer: (C)

After the Event insurance is a policy taken to manage the financial risk of going to court. Its main purpose is to cover disbursements (such as court fees and expert costs) and the risk of having to pay the other side’s costs if the claim fails. It does not guarantee you will win or recover damages, and it is not a replacement for a Conditional Fee Arrangement. In short, ATE provides a safety net against adverse costs and certain expenses if the case is unsuccessful.

After the Event insurance is a policy taken to manage the financial risk of going to court. Its main purpose is to cover disbursements (such as court fees and expert costs) and the risk of having to pay the other side’s costs if the claim fails. It does not guarantee you will win or recover damages, and it is not a replacement for a Conditional Fee Arrangement. In short, ATE provides a safety net against adverse costs and certain expenses if the case is unsuccessful.