Equality of arms – ATE insurance for insolvency claims
ATE insurance can be used for all types of insolvency disputes pursued under the Insolvency Act 1986 and Companies Act 2006. We are able to support claims where the insolvency practitioner is acting as the trustee in bankruptcy, a liquidator or an administrator.
We insure a range of insolvency related disputes including: –
- Claims under section 127 of the Insolvency Act 1986
- Misfeasance claims under section 212 of the Insolvency Act 1986
- Fraudulent trading claims under section 213 of the Insolvency Act 1986
- Wrongful trading claims under section 214 of the Insolvency Act 1986
- Transactions at an undervalue under section 238 of the Insolvency Act 1986
- Preference claims under section 239 of the Insolvency Act 1986
- Transactions defrauding creditors under section 423 of the Insolvency Act 1986
Insolvency case study: Misfeasance
A case where the IP was investigating a former director for misfeasance.
Read MoreThe Temple Advantage for insolvency cases
Our experience of insolvency litigation is considerable and our reputation for excellent service is second-to-none. The products we offer reflect our commitment to listening to our clients and providing effective insurance that enables insolvency practitioners to get the best results out of their claims.
- ATE insurance for insolvency litigation is used by liquidators, administrators and trustees in bankruptcy
- No upfront cost of obtaining ATE insurance – and also we do not charge an assessment fee
- Payment of the premium is deferred until the conclusion of the case and is contingent on a successful outcome
- Insured clients will have access to disbursement funding from Temple Funding, a subsidiary of Temple Legal Protection. This can be used to fund the court issue fee, expert reports and mediation.
Ways to access Temple commercial ATE insurance
Amplify, Espresso, Concierge and Solo are designed to speed-up and simplify this process. This is so your clients get the protection they need with the minimum of fuss – still with fully deferred and contingent premiums at market-leading rates and backed by a UK based “A” rated insurer.
- Amplify – The all-inclusive ATE insurance option with own Counsel’s fees insured.
- Espresso – fully delegated authority for commercial cases with automatic disbursement funding, bespoke premiums and no waiting. Requires an agreed case volume.
- Concierge – bespoke Temple underwriting in collaboration with you – for your client’s cases with similar characteristics. Streamlined application process with a faster response from underwriters.
- Solo – suitable for more valuable and complex individual cases requiring additional scrutiny. Come to Temple directly for competitive, deferred and contingent premiums.
Getting the timing right
The ATE insurance policy is purchased after a legal dispute arises.
The best time to send a case to us is as soon as you are reasonably able to assess the merits of the claim. Usually, this is after your investigation and the pre-action correspondence has been completed, and before proceedings are issued. However, cases can be referred to us at any stage.
It is useful to see pre-action correspondence, when available, any insolvency practitioner’s witness statement and exhibits, and information about the opponent’s ability to pay damages and costs.
Insolvency litigation case studies
Click here to read two case studies with a total claim value of over £300,000 – one providing cover for a liquidator in his claim against a former member of a limited liability partnership and the other success in a claim against a bankrupt resulting in ‘a very good settlement at the door of the court’.
Your questions answered
Traditional legal expenses insurance is often known as Before-The-Event or ‘BTE’ cover. Litigation insurance for insolvency disputes is used by solicitors and is commonly known as After-The-Event or ATE insurance. The latter is the technically correct term but your clients may better understand ‘litigation insurance’. Whichever terminology you prefer, it is a bespoke policy put in place with the specific objective of protecting your client from having to pay the opponent’s costs and their own disbursements if they lose their case.
The Insured will usually be recorded as the insolvency practitioner, acting as the trustee in bankruptcy, administrator or liquidator.
The insolvency practitioner will be liable to pay the premium.
We understand that global settlements are commonplace in insolvency litigation. If it is necessary to reduce the premium in order to bring about a settlement, we can consider doing so on a commercial basis that works for us and the client.
The standard terms and conditions provide indemnity for the Insured’s own disbursements and the other side’s costs. Own disbursements which are indemnified under the terms of the policy, for example mediator’s fees or the cost of an expert report, will be eligible for disbursement funding.
Whilst we do not ordinarily require a solicitor to act on a CFA for any area of work, it is usually the position that lawyers acting on insolvency disputes are instructed on a CFA basis. If you are not working on a CFA basis, we may ask why this is and how the fees are funded. This will not affect our view of the merits of the case.
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Make enquiryContact our experts
If you would like more information on our ATE insurance and disbursement funding products for insolvency litigation, or you have any other legal expenses insurance query, please email or call me on 01483 514428. We look forward to hearing from you.
Matthew Pascall
Legal Director – Head of Commercial
Matthew Pascall
Matthew was called to the Bar in 1984 and joined Guildford Chambers two years later. Spending more than 30 years in practice there, he was listed as a Legal 500 Tier One barrister.
He joined the commercial team at Temple Legal Protection as Senior Underwriting Manager in 2017.
Matthew was appointed to Temple’s Board in December 2022 as Legal Director and Head of Commercial.
His knowledge of the commercial legal sector and litigation practice is invaluable to the business and our clients, providing specialist experience to lead the commercial litigation insurance team.
You may also be interested in
- Disbursement Funding and ATE Insurance for Commercial disputes – what’s what? https://www.temple-legal.co.uk/news/litigation-funding-and-ate-insurance-for-commercial-disputes-whats-what/
- Watch our ‘What are the Key Benefits of Temple’s Commercial ATE Insurance?’ https://vimeo.com/746964788
