ATE insurance coverage can be very flexible to meet the needs of individuals, companies and groups of individuals, however, here is what is typically covered by ATE insurance:
What is insured?
Your legal obligation to pay opponents costs
Opponents costs:
o arising out of an unsuccessful claim brought in Australia.
o that you become liable to pay as a result of a failure to beat an offer made by your opponent, if the insurer authorised rejection of the offer.
o that you become liable to pay as a result of discontinuing the litigation with the insurer’s authority.
o that you become liable to pay as a result of an appeal brought by your opponent if you are successful in your claim.
o that you become liable to pay as a result of an appeal brought by you with the insurer’s approval, if you are unsuccessful in your claim at first instance.
Own costs (additional cover):
o a percentage of own solicitor costs.
o a percentage of own disbursements including counsels fees.
What is NOT insured
The policy does not provide cover for:
o cover is only provided where you are more likely than not to be successful in the litigation.
o cover is not provided for costs incurred as a result of your failure to follow advice from your solicitor.
o cover is not provided for costs incurred as a result of your or your solicitor’s failure to comply with procedures and court orders.
o cover is not provided for costs incurred as a result of actions taken by you or your solicitor without the approval of the case manager.
Are there any restrictions on cover?
! Reimbursement and offset: The insurer may offset all sums recovered from an opponent against any claim due in respect of opponents costs, plus own disbursements and own costs if agreed.
! Cover is only provided for appeals with the approval of the case manager.
! If required by the insurer, cover is only provided once you and your solicitor have signed the mandate confirming the premium will be deducted from any damages received.
Disclaimer:
The information provided in this article is for general informational purposes only. While we strive to ensure the accuracy and relevance of the information presented, it does not constitute legal, financial, or professional advice.
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