What is after the event insurance?
Most insurance policies are purchased to mitigate a known risk, but one which has not yet happened – i.e., before the event. For example, you buy cyber insurance for your business because you know cyber-crime is a risk to your business, but you buy it in advance of actually suffering a cyber-attack.
However, after the event insurance enables you to purchase a policy after an event or accident has happened.
After the event insurance is a specific type of legal expenses insurance policy. It is purchased ‘after the event’ has happened, typically when the policyholder is involved in legal action but has yet to incur any significant legal costs. After the event insurance is available to both claimants and defendants of a legal case.
After the event insurance will typically cover the insureds costs and any awards as well as the third party’s legal costs if the case is lost.
How does after the event insurance work?
After the event insurance is a legal expenses policy so of value to those who are involved in legal action with a third party. The cover is usually purchased when a ‘before the event’ policy has not been taken out.
With legal action, there is a risk that you will lose your case. And if this does happen you are then liable for the third parties incurred costs such as legal fees. After the event insurance allows you to insure against this financial risk. If you do lose the case, the policy will pay out to cover costs incurred by the third party, as well as your own costs and any awards.
After the event insurance underwriters will only put forward cover if they believe that there is at least a 50-60% chance of success in the case. They will often seek a view as to the merits and likely success of the case prior to submitting terms. This cost is usually borne by the Insured.
The fact that ATE insurers are involved, and therefore have analysed the circumstances and believe that they/their Insured will win, often brings the Third Party to the table for an out of court settlement.
How much does after the event insurance cost?
Premiums for after the event insurance are typically high given the nature of the cover.
As with all insurance policies the costs of an after the event insurance policy will vary depending on a range of factors. The best course of action as ever with insurance is to do your research and find a policy which offers the cover that you require.
How long following an event can you claim on after the event insurance?
After the event insurance can be purchased at any point after the event but is typically purchased once you have decided to take legal action. Commonly when you have appointed a solicitor or lawyer.
After the event insurance can be purchased later on in the legal process but typically gets more difficult and more expensive to obtain the further into the case that it is purchased.
At Anthony Jones we invest a lot of time in getting to know our customers and their businesses and providing tailored business insurance solutions. We work hard to support our customers with risk management advice and believe this to be an invaluable element of the service we provide. Get in touch with us today on 020 8290 9080 or email us at business@anthonyjones.com to discuss how we can help your business make the right insurance decisions.
