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ATE Insurance

After the Event (ATE) Insurance

Nudorra Capital is promoting the use of ATE Insurance products through a strategic relationship we have with an Insurance Broker. The overwhelming advantages of costs, security, and protection, for both lawyer and plaintiff, speak for themselves.

The most important attribute is that insurance companies are licensed and regulated, their capital is protected, and they have decades of global experience. The insurance product gives you Delegated Authority and courts in Ontario are finding After-The-Event (“ATE”) insurance is a strong weapon against Security for Costs.

Insurance has these additional benefits:

  • Covers both Disbursements and Adverse costs.
  • Gives Delegated Authority to the lawyer, giving you surety when speaking to clients.
  • If the plaintiff loses the case, Insurance always covers the premium.
  • For unsuccessful claims, Insurance allows the plaintiff to keep the awarded damages and pays out adverse costs or disbursements on top.
  • The Insurance protection can be tailored to meet your firm’s requirements, but typically starts at $100,000 of cover. No upfront cost.
  • No insurance premium is due if the case is discontinued or abandoned.
  • The company providing protection does not manage, control, or direct the litigation in any way.
  • Arbitration costs are covered.
  • Interim cost orders are covered.

As a service to our clients, we have included a list of “Frequently Asked Questions (FAQ’s)” in hopes of better explaining ATE Insurance, their products and benefits.

ATE Insurance – FAQ’s

The following questions apply to the usual conditions that you would find in an “After the Event” policy. However, cases can be subject to individual conditions if insurers deem these to be appropriate.

Insurance – General

The ATE policy is owned and paid for by the plaintiff.

The premium is due at the successful conclusion of the plaintiff’s case. If a claim on the policy is made, the premium is waived in its entirety. There is no upfront cost and no interest applies to the premium amount and the premium is waived for unsuccessful or abandoned files.

ATE insurance typically provides cover to your clients for any adverse costs, own disbursements, and failure to beat a With Prejudice Offer, but a program can be tailored to your requirements. ATE insurance also covers interlocutory hearings. Further, an ATE insurance policy has been accepted at the appellant court in Ontario to satisfy a Security for Costs order.

No, this would conflict with your Contingency Fee Agreement (CFA). Your disbursements however are covered from day one of the file.

Cover can be provided for a wide range of personal injury cases including, but not limited to:

  • Auto accidents
  • Slip/Fall cases
  • Employers’ liability
  • Product liability
  • Sport related injuries
  • Animal related injuries

There are also ATE policies available for medical malpractice, employment, and civil/commercial litigation.

The Standard cover is $100k. If you believe that your case requires further cover (if it will go to a long trial for instance) you can apply for an increase.

The Standard ATE insurance cover can be applied retrospectively from the date the CFA was signed by the client. This ensures that all disbursements, even the initial investigatory reports, are captured.

Our brokers have multiple insurers to offer a client firm, with specialist insurers for each class of business. We would not recommend using a one insurer broker.

Applying for Insurance

Under a delegated authority facility, you can bind any of your personal injury cases so long as the case:

  • Is run on a CFA (Contingency Fee Agreement)
  • Has prospects of success (determined by you) of 51% or better
  • Is within 180 days of the CFA retainer being signed
  • Is a plaintiff matter

After the Delegated Authority facility is in place, all that is typically required is a short information form, giving the basics only. A policy document and certificate will be emailed directly to the retained lawyer once processed.

The insurer trusts the lawyers to whom they give a delegated authority facility and follows their expert advice on the case. The insurer recognizes that the lawyer is also taking their own risk (under a CFA) on the case, and so is prepared to follow their advice.

Our licensed brokers will assist in submitting the case to underwriters as they have lawyers in-house to assist.

Nothing. There is no application fee, and all premiums are deferred to the conclusion of the matter and only payable should your client win their case.

Basic Requirements

No there is no panel and no set number of files required.

Yes. This means that no premium is payable in the event the case is lost or discontinued. There is no deduction from the level of insurance cover in place to pay the insurance premium.

None; Our brokers have had its agreement passed through the Law Society of Upper Canada’s Practice Management Committee to ensure that the insurer cannot control the file, or influence the management of the file.

There are no dedicated claims adjusters; and no individual tariffs apply per claim. Lawyers should consider this program tantamount to a reimbursement program.

Our brokers only use licensed and regulated Canadian insurers who also have a specialist license to underwrite Legal Expenses Insurance.

Please Note:

Nudorra Capital is a litigation loan company that works with law firms and provides loans to plaintiffs in need of financial assistance until their case settles. We are not an insurance company or licensed insurance brokers. As a service to our customers and through a strategic relationship we have with an insurance broker, we will introduce lawyers and/or law firms to a fully licensed and regulated insurance broker that specializes in ATE Insurance products and you or your firm will be able to purchase these products and/or services directly from them.

Nudorra Capital is honoured to have been chosen Winner in the Litigation Funding Provider category of the Readers’ Choice Awards for Canadian Lawyer Magazine, 2016/2017, 2017/2018, 2018/2019, 2019/2020 and now 2020/2021. We thank all the lawyers and law firms across Canada that have voted for us.

We have also received an (A+) Accreditation from the “Better Business Bureau” (BBB) and are Proud Supporters of the OTLA Policy on Conduct of Litigation Loan Companies.

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