Insolvency exemption to LASPO – 8 weeks and counting…
The insolvency exemption to LASPO will end on 1 April 2016.
Whilst we all know it is coming you may want to bear the following in mind:
- Unsurprisingly there has been an influx of applications for ATE insurance. The more flooded the market becomes the less prospect of obtaining insurance; and the higher the cost. The higher the cost of ATE insurance the more impact it has on settlement.
- An influx of applications means a longer waiting time for a decision. It has been reported that some insurers are taking up to 4 weeks to make a decision on ATE – if you have any claims that may need ATE insurance you need to be seeking a quote now.
- Having to pay for ATE premiums will impact upon your ability and willingness to bring a claim in claims with smaller margins.
- Possible conflict of interest – ‘I don’t want to be personally liable for the cost of the ATE premium and so will not bring a claim’ –v- ‘duty to get in and realise the assets’.
- So whilst there is less than 8 weeks left until the exemption to LASPO expires, Insolvency Practitioners actually have much less time to take advantage of the current regime.
Please feel free to give one of the members of the Insolvency and Business Recovery Team a call should you want to discuss whether you should be seeking ATE insurance on a pending or current claim.