Insolvency ATE insurance will continue despite the end of premium recoverability

Print This Post

4 January 2016


DASLawAssist 200Leading ATE insurer, DAS LawAssist predict that the recent announcement to end the insolvency exemption from LASPO will penalise claimants but not end the need for ATE insurance.

Commentating on the announcement, Richard Whale, sales manager at DAS LawAssist said: “Lord Faulks said in his statement that the government has made a priority of addressing the high costs of civil litigation.

This decision doesn’t reduce the costs of litigation it just moves the burden onto the innocent creditors. This will mean that Insolvency Practitioners will be able to pursue fewer cases and less money will be recovered. This places even more financial pressures upon hard-up businesses and individuals.”

In a statement issued to Parliament on 17 December Lord Faulks outlined that as of 1 April 2016 the recoverability of success fees and ATE premiums in insolvency cases will cease.

Richard Whale continued: “What we have learnt from LASPO is that the need and desire for ATE insurance continues despite changes in premium recoverability. DAS LawAssist will still be offering ATE insurance as there will be a demand for it and we expect to see an increase in submission of insolvency cases before the April deadline.

“Whilst the premium will not be recoverable, ATE will still provide the means to pursue the recovery of owed debts and protection against the cost of litigation should the case be unsuccessful. However this decision by the Government means that the creditors will be penalised by having to pay the premium from the money they recover.”



Associate News is provided by Legal Futures Associates.
Find out about becoming an Associate



Legal Futures Blog

Preparing for the GDPR – What do you need to know right now?

Craig Forsyth

On 25 May 2018, the EU General Data Protection Regulation (GDPR) comes into force. That might seem like a long time, but that’s just over 100 days away at the time of writing. Actually, GDPR was adopted back in April 2016, May 2018 is the end of the two-year grace period. The GDPR brings with it a whole host of changes, and the penalties for non-compliance are higher than ever, either 4% of your annual turnover or £20m, whichever is higher. But how do you prepare? What do you need to change first? Where do you even start?

February 19th, 2018