Conditional fee agreement (CFA) vs After-the-event (ATE) insurance
They cover different risks and are often used together. A CFA means you pay your own solicitor no fee if you lose. ATE insurance pays the other side's costs, and often your own expenses, if you lose. A CFA alone leaves you exposed to the other side's costs.
- What it protects you from
- Conditional fee agreement (CFA): Your own solicitor's fees if you lose. After-the-event (ATE) insurance: The other side's costs, and often your own expenses, if you lose.
- Who provides it
- Conditional fee agreement (CFA): Your solicitor. After-the-event (ATE) insurance: An insurer, usually arranged by your solicitor.
- What it costs if you win
- Conditional fee agreement (CFA): A success fee on top of the base fees, capped by law. After-the-event (ATE) insurance: A premium, normally paid out of your damages; it is usually not recoverable from the other side.
- What it costs if you lose
- Conditional fee agreement (CFA): No fee to your solicitor if the agreement says so. After-the-event (ATE) insurance: Often nothing: many premiums are deferred and payable only if you win.
- Needed in personal injury claims
- Conditional fee agreement (CFA): Common. After-the-event (ATE) insurance: Less often, because QOCS usually protects claimants from the other side's costs.
Frequently asked questions
Do I need ATE insurance if I have a CFA?
Often yes, outside personal injury. A CFA only deals with your own solicitor's fees. If you lose, a court can still order you to pay the other side's costs, and ATE insurance is the usual protection.
Who pays the ATE premium?
Usually you, out of your damages if you win. Many policies defer the premium and make it payable only if the claim succeeds, so nothing is due if you lose. Check the policy.
Can my solicitor arrange ATE insurance?
Yes, solicitors usually arrange it with an insurer they work with. Ask what it covers, the limit of cover, the premium and when it is payable.