Insurance solution
Legal Asset Insurance
Risk transfer supporting the balance-sheet or financing treatment of legal assets.
- A judgment or award wonThis cover
- 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 Legal Asset Insurance?
Legal Asset Insurance is a form of litigation risk transfer that may be arranged around the value of a legal asset. Risk transfer supporting the balance-sheet or financing treatment of legal assets. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
Legal Asset 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
- The value of a legal asset, 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
Holders of legal assets — claims, judgments, awards or fee receivables — who want to finance, sell or account for them with a defined downside.
Clause 2
Insuring clause
What risks can be protected
The value of the legal asset, or the capital advanced against it, if the expected recovery does not materialise.
Clause 3
Operation of cover
How it works
The insurer underwrites the asset's legal risk so that a lender or buyer can rely on a minimum value.
That can make a legal asset easier to borrow against or sell.
Clause 4
Underwriting
Underwriting factors
The core assessment is the same as for Capital Protection 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 Capital Protection Insurance page, plus the documents specific to this cover noted above.
Clause 6
Limit, premium and staging
Potential structure
- (a)Insured value set below the expected recovery;
- (b)Cover responding at the end of the case or on a defined trigger; and
- (c)Lenders often named as loss payees.
Clause 7
Alternatives
Alternatives
- (a)Monetising the asset through a funder;
- (b)A secondary sale at a discount; and
- (c)Holding the risk.
Clause 8
Territory
Jurisdiction notes
Forum rules apply as described on the Capital Protection 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 is a legal asset?
A right to money arising from a dispute — a claim, a judgment, an arbitral award or a law firm's contingent fees — that can be valued, financed or sold.
How does insurance help finance a legal asset?
By insuring a minimum value on the terms of the policy, it can give a lender or buyer a defined downside, which can make the asset easier to borrow against or sell on better terms.
Is Legal Asset 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.