Buying ATE Insurance protects you against adverse cost awards for failed or abandoned litigation. It can also pay for your lawyer’s disbursements. In these way it helps level the playing field for accident victims facing big insurance companies.
However, a judge from the Ontario Superior Court of Justice just ruled that ATE Insurance is not a compensable disbursement. That means that you cannot force the unsuccessful party to pay for the premium if you are successful at trial. For more information contact your lawyer.