Litigation is not for the faint hearted – it can be expensive, disruptive and the outcome at trial is far from certain.

The adage that uncertainty begets litigation has taken on an even greater significance in these uncertain times. In this environment, businesses (plaintiff companies) should seriously consider the benefits of After the Event (ATE) insurance.

ATE protects an insured plaintiff business when it pursues its rights through the courts but becomes liable for the other party’s (the respondent’s) legal costs if the case is unsuccessful.

Respondents’ legal costs can be significant, particularly if the respondent is a much larger company and likely to have engaged expensive legal resources. A David v Goliath contest can devastate a smaller company that does not have the protection afforded by ATE.

Common commercial disputes are where a plaintiff company has to pursue a respondent that has failed to pay its debts or breached its contractual obligations.

ATE is more affordable and accessible than many expect. JMD Ross can negotiate premium terms to meet the specific financial requirements of the business seeking insurance.

A common way for the premium to be paid is for only a small percentage of the total premium to be paid upfront, which is not refundable. The remaining, larger percentage becomes due only if the case is settled favourably before or at trial. Importantly, if the case fails, the business pays no further premium.

Plaintiff companies can approach JMD Ross directly to secure ATE terms, but it is usually their solicitors, seeking cover on the company’s behalf. Interest from plaintiff solicitors and plaintiff companies in Australia, where the product is relatively new, is growing significantly. ATE has been successfully sold in the UK for many years.

Read more about JMD Ross’s ATE policy here. Review the proposal form here.

If your business or your solicitors want to discuss the benefits of ATE, the premiums that apply and the process to obtain cover, please contact:

James Walker         T 02 9478 0836                    E jwalker@jmdross.com.au
Authorised Representative 1246967                    M 0414 241 690
John G Duncan       T 02 9478 0814                    E jgduncan@jmdross.com.au
John Davaine          T 02 9478 0835                    E jdavaine@jmdross.com.au

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