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Litigation Insurance

Dispute type

Fraud Insurance

Risk transfer that may be arranged around the cost and capital profile of fraud.

Where the exposure sits
  1. A judgment or award wonConsidered
  2. A judgment against you
  3. Funder capital deployedConsidered
  4. Law firm fees and WIP
  5. Security for costs
  6. The opponent's costsConsidered
  7. DisbursementsConsidered
  8. 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 fraud be insured?

Fraud claims can be insured for costs risk, but recovery is the harder problem: underwriters look closely at asset tracing and enforcement. ATE is the usual instrument, often alongside funding for tracing and enforcement.

On this page2 min read
  1. Key points
  2. The risk profile
  3. Which structures apply
  4. Illustrative scenario
  5. Underwriting considerations
  6. Frequently asked

Key points

  • Interim relief and cross-undertakings add early exposure.
  • Assets may be hidden across several jurisdictions.
  • Enforcement cost is part of the case budget.

The risk profile

Fraud claims often involve urgent interim relief, asset tracing across borders and defendants who hide assets.

Winning is only half the problem; recovery is the other.

Which structures apply

  • ATE, including cover for cross-undertakings in damages where available
  • Capital protection for funders
  • Enforcement-focused structures

Illustrative scenario

Specimen · worked exampleIllustrative only

A company obtains a worldwide freezing order against former executives. ATE covers adverse costs, while a funder pays for asset tracing on a share of recoveries.

Figures are invented to show the mechanics. They describe no real client, matter or outcome.

Underwriting considerations

Strength of the evidence, traceability of assets, the defendants' jurisdictions and the cost of enforcement.

Frequently asked

Can a fraud claim be insured?

Yes, ATE can cover adverse costs, though underwriters weigh recoverability heavily because fraud defendants often hide assets.

Are freezing orders covered?

Some policies can respond to liability under a cross-undertaking in damages given to obtain a freezing order; this must be specifically agreed.

Is litigation funding available for fraud claims?

Yes, funders back fraud and asset-recovery claims, often funding tracing and enforcement for a share of recoveries.

What makes a fraud claim insurable?

Strong evidence and a realistic route to recovering assets. Winning a judgment against a defendant with hidden assets is only half the problem.

Can enforcement costs be covered?

Enforcement is usually funded rather than insured, but it forms part of the case budget that underwriters review.

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.

Keep reading

Understand the exposure.

Technical analysis of litigation risk, how cover is underwritten and what drives cost — written for general counsel, funders, law firms and investors.

General information only. It is not advice and not an offer of insurance.