To answer your actual question, After The Event Insurance (ATE) is an insurance you take out along with the "no win no fee" agreement. All ATE policies differ slightly so I can only tell you about the one we offer at my firm to people making similar claims to yours - the Insurance essentially covers any liability you may have for any other party's costs if you lose (eg medical report fees, court fees, defendant's costs etc), our costs would still be written off but the ATE means that there is nothing for you to pay. As I say, the ATE we offer allows for a deferred premium, meaning the premium isn't paid until the end of the claim, only paid if the claim is successful and then is claimed back from the Defendant. In short, (and like I say, this is the ATE we offer, and I don't think I can really say what company it is), but: if you win, the premium is payable but is paid by the Defendant; f you lose, the insurance kicks in and pays any liability you have for other party's costs, but you don't have to pay the premium. Your Solicitor should really be able to explain it to you quite clearly, and will be used to going through it al with clients. Peter Pedant - carlyon bay did say that the metal on metal hip replacement has caused major physical problems and, no offence, but your explanation of after the event insurance is quite wrong....