Insurance solution
Arbitration Capital Protection
Capital protection for parties and funders in arbitral proceedings.
- A judgment or award won
- A judgment against you
- Funder capital deployedThis cover
- Law firm fees and WIP
- Security for costs
- The opponent's costs
- Disbursements
- 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 Arbitration Capital Protection?
Arbitration Capital Protection is a form of litigation risk transfer that may be arranged around capital deployed into arbitration. Capital protection for parties and funders in arbitral proceedings. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
Arbitration Capital Protection
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
- Capital deployed into arbitration, 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
Funders and parties committing substantial capital to long-running arbitrations, including investment-treaty claims.
Clause 2
Insuring clause
What risks can be protected
Capital deployed into the arbitration if the claim fails or the award is not recovered.
Clause 3
Operation of cover
How it works
The insurer assesses the claim, the budget and the enforcement route, then protects an agreed layer of the deployed capital.
Long timelines and enforcement risk make recovery analysis central.
Clause 4
Underwriting
Underwriting factors
The core assessment is the same as for International Arbitration 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 International Arbitration Insurance page, plus the documents specific to this cover noted above.
Clause 6
Limit, premium and staging
Potential structure
Principal protection with contingent premium; separate treatment of pre-award and post-award risk.
Clause 7
Alternatives
Alternatives
- (a)Syndication among funders;
- (b)Secondary sale of the claim interest; and
- (c)Award insurance once an award is made.
Clause 8
Territory
Jurisdiction notes
Forum rules apply as described on the International Arbitration 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
Why protect capital in an arbitration rather than a court case?
Arbitrations, particularly investment-treaty claims, can run for many years and end in awards that are hard to enforce. Protection limits the funder's loss across that long, uncertain path.
Does arbitration capital protection cover non-payment of the award?
Not necessarily. Pre-award and post-award risks are often treated separately; non-payment may need award or political risk cover.
Is Arbitration Capital Protection 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.
Where to go next
Jurisdictions