What’s ATE insurance and how does it work in Canada?
Sometimes even the best laid plans don’t work out. Even though witnesses are carefully interviewed, legal precedents are thoroughly researched and a case is thoughtfully prepared, it may fail to be won in court. And when a case fails, your client will face significant expenses that they may not be able to afford.
This situation is precisely what After The Event insurance (aka ATE insurance) is designed to support. More and more lawyers and law firms are starting to offer their clients After The Event insurance in Canada.
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Here’s how ATE insurance works in Canada…
We offer ATE insurance to law firms and lawyers who support clients with personal injury compensation claims. In fact, an ATE policy is specifically designed to give claimants the financial support they need to pursue legal rights as well as protects them in case they lose or discontinue their claim.1
Essentially, ATE insurance is designed to provide claimants with both peace of mind and the security to pursue their legal rights.2 Slip and fall and motor vehicle accidents are typical types of claims that ATE coverage is built to support.
As well, ATE insurance may help your client benefit from a contingency fee agreement. In this situation, if the case is lost, under your direction as a lawyer your client will benefit from a “no win, no fee” arrangement. This means that the client does not have to pay their lawyer but does not recover their disbursement costs and may be liable to pay their opponent’s legal fees.3
What other risks does ATE insurance address?
This unique form of insurance is designed to help your clients when they are pursuing a complex personal injury claim. And because time equals money, expenses related to personal injury claims add up quickly. When a personal injury case is lost in court, your client “may have to pay (their) opponent’s costs and…will not recover any expenses (they) or (their) lawyer have incurred in pursuing the compensation claim.”4
Working with us, you can arrange $100,000 worth of coverage for your client to protect them against their own disbursements as well as their opponent’s costs and disbursements. Additional coverage can be secured. Your client will benefit from significant peace of mind because the ATE insurance premium will be deferred until the case concludes. Most importantly, the client will know they only pay if the case is successful.5
This is how ATE insurance enables law firms to deliver legal expense insurance that specifically responds to personal injury claims. ATE insurance in Canada gives you a tool that protects when even the best laid plans don’t work out.
Talk to an ALIGNED broker to learn more about how you can support your clients with after the event insurance.