The Post Office Scandal and The Role of ATE Insurance

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The recent ITV drama, ‘Mr Bates v The Post Office,’ brought to light the shocking and deeply unjust treatment of sub-postmasters and postmistresses by the Post Office between 1999 and 2015. As the aftermath of the scandal continues to unfold, with renewed interest and new cases emerging, it becomes imperative to understand the pivotal role that ATE insurance played in seeking justice for those wronged.

The scandal’s impact and ongoing repercussions

The ITV drama depicted the harrowing experiences of sub-postmasters who were held responsible for financial discrepancies arising from the unreliable Horizon accounting system. Following the series, Neil Hudgell of the law firm Hudgells reported a surge in new inquiries, indicating that the trauma of the sub-postmasters was finally gaining widespread attention.

But the heartbreaking reality is that, despite not being prosecuted, many lost their livelihoods and homes due to the allegations, so much so that Prime Minister Rishi Sunak denounced the scandal as an “appalling miscarriage of justice,” prompting the government to explore ways to rectify the wrongs inflicted upon those implicated.

Alan Pratten’s insight: ATE insurance and the Post Office scandal

Chair of M&A, litigation and tax insurance solutions at Gallagher, Alan Pratten, recently highlighted the crucial role played by the insurance sector in the Post Office scandal, explaining that the saga began when the Post Office’s Horizon software indicated missing funds from branches across the UK. In response, Alan Bates, a former sub-postmaster, formed the Justice for Subpostmasters Alliance (JFSA) in 2009, aiming to seek justice for those wrongly accused of fraud.

However, taking on a government-funded entity like the Post Office understandably presented significant challenges, including financial barriers to legal representation.

Partner James Hartley, leading the case for the sub-postmasters, faced the daunting task of securing after the event (ATE) insurance to protect claimants from the financial burden of the Post Office’s legal costs.

ATE insurance as a key player

In this context, ATE insurance played a pivotal role in ensuring access to justice for the claimants, particularly as Hartley’s challenge was exacerbated by the fact that many claimants had criminal records due to convictions related to the Horizon software’s findings, including fraud, theft and false accounting.

What’s more, traditional insurers were hesitant to get involved due to the industry’s tough stance on fraud-related cases, and the majority of existing ATE policies were nullified due to the claimants’ previous convictions. The result was that this became an uphill battle to secure appropriate coverage.

A unique approach and new precedent

In a collaborative effort, a panel of UK and US insurers and reinsurers worked tirelessly to tailor a policy that addressed the unique circumstances of the claimants, ensuring that previous convictions for fraud did not violate the terms of the insurance.

This approach involved tailoring the policy wording in 85 different areas, setting a new precedent in the ATE insurance industry, and highlighting that standardised policies are rarely the best fit for complex cases, therefore emphasising the need for an insurance broker who understands and can cater to unique circumstances.

A crucial turning point

With the insurance secured, the sub-postmasters and postmistresses could proceed with their legal battle against the Post Office. The outcome, as we now know, resulted in the exposure of a serious miscarriage of justice, and the role of ATE insurance played a crucial part in enabling the claimants to have their voices heard against such an enormous entity.

ATE insurance and the pursuit of justice

Reflecting on the Post Office scandal and its aftermath, the significance of ATE insurance in levelling the playing field cannot be overstated.

The unique challenges presented by the criminal records of the claimants required an innovative and tailored approach, and this is something the industry can learn from in order to properly understand that flexibility and customisation are essential in addressing the diverse and complex nature of legal battles.

The Post Office scandal serves as a poignant reminder of the resilience of individuals seeking justice against formidable adversaries, and through its evolution in this case, ATE insurance has set a new standard for adaptability and responsiveness, ensuring that individuals wronged by a miscarriage of justice can navigate the legal system with financial protection and the support they rightfully deserve.

A Unique Approach to ATE Insurance

amberis are a truly independent FCA regulated insurance broker working with industry leading insurers to create bespoke ATE solutions which are best suited to meet the protection needs of solicitors and their clients.

Our areas of expertise include personal injury, civil litigation, financial mis-selling, group litigation and energy misrepresentation, and our 20 years’ experience has allowed us to build prosperous relationships with a range of commercially aware, highly trusted insurers.

With amberis, you can rest assured you’re working with the best. Our underwriters are credible, UK domiciled and regulated by FSCS, with a high claims payment ratio and willing to communicate and engage with our customers directly.

As a result, we’re able to offer a unique and flexible approach to ATE insurance, and we can work seamlessly alongside your team as a strategic partner.

Speak to us today to find out more.