Dispute type
Competition / Antitrust Insurance
Risk transfer that may be arranged around the cost and capital profile of competition / antitrust.
- A judgment or award won
- A judgment against you
- Funder capital deployedConsidered
- Law firm fees and WIP
- Security for costs
- 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 competition / antitrust be insured?
Competition damages claims — individual and collective — commonly use ATE for adverse costs and funding for own costs, and the court or tribunal may scrutinise both when certifying collective proceedings. Portfolio cover can apply where a funder backs several claims.
On this page2 min read
Key points
- Long timetables and heavy economic evidence drive high costs.
- Funding and ATE arrangements may be reviewed at certification.
- Pass-on and quantum economics are central to underwriting.
The risk profile
Follow-on and standalone damages claims involve long timetables, heavy economic evidence and, in collective proceedings, large numbers of claimants.
Costs can be very high before liability is decided.
Which structures apply
ATE for adverse costs in collective and individual claims, capital protection for funders, and portfolio cover where several claims are funded together.
Illustrative scenario
A class representative brings collective proceedings with a £40m budget backed by a funder. ATE covering adverse costs forms part of the arrangements the tribunal scrutinises when certifying the claim.
Figures are invented to show the mechanics. They describe no real client, matter or outcome.
Underwriting considerations
The strength of any infringement decision, pass-on and quantum economics, the distribution mechanism and funding terms that the court or tribunal may review.
Frequently asked
Is ATE used in competition class actions?
Yes. Adverse costs cover is commonly part of the funding arrangements for collective proceedings, and may be reviewed when the claim is certified.
Do follow-on claims carry less risk?
A binding infringement decision can reduce liability risk, but causation, pass-on and quantum often remain contested.
Who pays if a competition class action fails?
The class representative may face an adverse costs order, which is why ATE is typically part of the funding arrangements.
Can businesses bring competition damages claims individually?
Yes. Businesses harmed by cartels or abuse of dominance can bring individual claims, which can also be funded and insured.
How long do competition damages claims take?
Often several years, given the economic evidence involved, which is why staged cover and patient capital are common.
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
Relevant cover
Jurisdictions
See also