Dispute type
Breach of Contract Insurance
Risk transfer that may be arranged around the cost and capital profile of breach of contract.
- A judgment or award wonConsidered
- A judgment against you
- Funder capital deployed
- Law firm fees and WIP
- Security for costsConsidered
- The opponent's costsConsidered
- DisbursementsConsidered
- Own legal costs
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
Can breach of contract be insured?
Contract claims are frequently insurable because liability often turns on documents that underwriters can assess. ATE for adverse costs is the usual instrument; quantum and causation, rather than liability, are commonly where underwriters focus.
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Key points
- Documentary cases can be easier to underwrite.
- Limitation and exclusion clauses are reviewed early.
- Expert quantum evidence drives the limit and terms.
The risk profile
Contract claims often turn on documents and construction, which can make merits easier to assess than in fact-heavy disputes.
Quantum and causation are frequently where the risk lies.
Which structures apply
- ATE and security for costs cover
- Capital protection for funders
- Judgment preservation for large awards of damages
Illustrative scenario
A £10m claim for lost profits following termination. Liability looks strong, but quantum is contested. The ATE limit is set against the defendant's costs budget, and underwriters focus on the claimant's expert quantum report.
Figures are invented to show the mechanics. They describe no real client, matter or outcome.
Underwriting considerations
Clarity of contractual terms, limitation and exclusion clauses, and the evidence supporting quantum.
Frequently asked
Can a contract claim be insured after proceedings have started?
Yes, ATE can be bought at any stage, though cost and appetite depend on how far the case has progressed.
What do underwriters look at in a contract claim?
The contract terms, limitation and exclusion clauses, the documents and the expert evidence on quantum.
Can I get insurance for a breach of contract claim?
Often, yes. ATE for adverse costs is the usual instrument, underwritten on the merits, quantum and the defendant's ability to pay.
Is a small contract claim worth insuring?
Bespoke commercial cover suits claims where the likely recovery is proportionate to the costs being insured; very small claims rarely justify it.
Does ATE cover the damages I might have to pay on a counterclaim?
Standard ATE covers costs, not damages. Exposure to damages on a counterclaim would need to be addressed separately.
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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Jurisdictions