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Disbursement Insurance
Protection for disbursements incurred as a case progresses through its stages.
- A judgment or award won
- A judgment against you
- Funder capital deployed
- Law firm fees and WIP
- Security for costs
- The opponent's costs
- DisbursementsThis cover
- Own legal costs
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
What is Disbursement Insurance?
Disbursement Insurance is a form of litigation risk transfer that may be arranged around experts, counsel and court fees. Protection for disbursements incurred as a case progresses through its stages. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
Disbursement Insurance
Not a policy. A specimen to show how this cover is structured. Cover exists only when a policy is issued, on its own wording.
- Terms
- Terms, where available, are set case by case through underwriting.
- Protects
- Experts, counsel and court fees, depending on policy terms.
- Terms
- Limit, premium and conditions are set by underwriting on the specific risk.
Clause 1
The insured
Who it is for
Claimants and law firms who need to pay experts, counsel and court fees as the case runs and want those outlays protected if it fails.
Clause 2
Insuring clause
What risks can be protected
Disbursements incurred in running the case — expert reports, counsel's fees, court and tribunal fees — as defined in the policy, if the case is lost.
Clause 3
Operation of cover
How it works
Cover follows the disbursement budget.
As fees are incurred and reported, they fall within the policy limit; if the case fails on the defined terms, the insurer reimburses them.
Clause 4
Underwriting
Underwriting factors
The core assessment is the same as for After-the-Event Insurance: merits, quantum, a proportionate budget, recoverability and the legal team.
The points that weigh most for this cover are set out under "What risks can be protected" and "How it works" above.
Clause 5
Proposal documents
Information required
The standard presentation pack described on the After-the-Event Insurance page, plus the documents specific to this cover noted above.
Clause 6
Limit, premium and staging
Potential structure
Frequently combined with adverse costs cover; sometimes arranged as a facility for a law firm across multiple matters.
Clause 7
Alternatives
Alternatives
Disbursement funding from a funder or lender; or paying disbursements from the balance sheet.
Clause 8
Territory
Jurisdiction notes
Forum rules apply as described on the After-the-Event Insurance page; the jurisdiction guides linked below set out the position forum by forum.
Specimen for explanation only. Terms, limits and exclusions are set by underwriting on each matter and by the wording issued.
Frequently asked
What counts as a disbursement?
Out-of-pocket costs of running the case other than solicitors' fees: expert fees, counsel's fees, court and tribunal fees, and similar outlays defined in the policy.
Can disbursement cover be arranged across a law firm's caseload?
Yes, some insurers offer facilities that cover disbursements across qualifying matters rather than one case at a time.
Is Disbursement Insurance available for my dispute?
Availability depends on the merits, the quantum, the costs profile and the counterparty. Every risk is assessed individually and no cover exists until a policy is issued.
Does this quote a price?
No. Pricing is a function of the specific risk and is never quoted in the abstract. Nothing on this page indicates the cost or availability of cover.
Can it be combined with litigation funding?
Frequently, yes. Funding supplies capital; insurance defines the downside. The two are often structured together.
General information only. This page is not legal, financial, investment or insurance advice. Any insurance is subject to underwriting and to the terms of the policy wording issued.
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