Paper protection

Andrew Hogan of Hailsham Chambers considers how courts in England and Wales and the Cayman Islands assess after-the-event (ATE) insurance as security for costs in funded litigation, noting that English courts increasingly accept appropriately structured policies with anti-avoidance protections, direct enforcement rights and restrictions on cancellation as alternatives to cash security, while Cayman courts place greater emphasis on the practical enforceability of overseas insurance obligations, leaving uncertainty over whether even robust ATE policies issued by foreign insurers will satisfy local security requirements.

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