Global
Structure follows the forum.
Costs rules, security requirements and enforcement routes differ by jurisdiction, and can shape which exposures dominate.
Illustrative. Each marker opens that forum's page. Hollow squares are widely used arbitral seats; the seat can matter more than the parties' nationality.
Does litigation insurance work the same way in every country?
No. The forum's costs rules decide which exposures exist. Where the loser pays the winner's costs — England and Wales, Australia, Singapore, Hong Kong — adverse costs cover is central. Where each side generally bears its own costs, as in the United States, judgment and capital risk matter more. Security practice, funding rules and enforcement routes also differ by forum and by arbitral seat.
Forums
- UKUnited KingdomCosts shifting makes adverse costs the dominant quantifiable exposure.Loser-pays costs shiftingSecurity for costs applicationsCosts budgetingForum notes
- USUnited StatesWithout general costs shifting, judgment and capital risk dominate over adverse costs.Own-costs burdenAppeal risk on large verdictsContingent fee structuresForum notes
- EUEuropeRules differ materially between member states; structure follows the forum.Divergent costs rulesCollective redress regimesEnforcement across bordersForum notes
- AUAustraliaSecurity applications against funded claimants can be routine.Security for costsGroup proceedingsCosts shiftingForum notes
- SGSingaporeA principal seat for international arbitration in Asia.Arbitral security ordersCosts shiftingCross-border enforcementForum notes
- HKHong KongOutcome-related fee structures for arbitration have changed the funding landscape.Costs shiftingFunding and outcome-related fee rulesArbitral securityForum notes
- MEMiddle EastCommon-law free-zone courts and arbitral centres operate alongside local courts.Common-law free zonesConstruction and energy disputesEnforcementForum notes
- ARBInternational ArbitrationSeat, institution and enforcement route drive the structure more than nationality.Tribunal-ordered securityAward challengeEnforcement across statesForum notes
Costs rules by forum
| Forum | Costs rule | What tends to dominate |
|---|---|---|
| United Kingdom (England & Wales) | Loser pays | Adverse costs; security for costs |
| United States | Each side generally pays its own | Judgment, appeal and capital risk |
| Europe | Varies; often statutory scales | Depends on the country |
| Australia | Loser pays | Adverse costs; security against funded claimants |
| Singapore | Loser pays | Arbitral security; enforcement |
| Hong Kong | Loser pays | Arbitral costs and security |
| Middle East | Varies by court and free zone | Arbitration and enforcement |
| International arbitration | Tribunal discretion | Security, award challenge, enforcement |
General orientation, not advice. Costs rules have exceptions.
Frequently asked
Which countries have loser-pays costs rules?
England and Wales, Australia, Singapore and Hong Kong generally apply costs-follow-the-event rules. Many European countries do too, though often on limited statutory scales.
Does the US have loser-pays rules?
Generally no. Under the American rule each side pays its own legal fees unless a contract, statute or rule says otherwise.
Can one insurance policy cover disputes in several countries?
Capital protection and portfolio policies can cover cases in several forums. ATE is usually arranged per case, following that forum's costs rules.
Does it matter where an arbitration is seated?
Yes. The seat decides which courts supervise the arbitration and hear any challenge to the award, which affects award and enforcement risk.
Is third-party litigation funding legal everywhere?
No. Some jurisdictions restrict funding of court litigation while permitting it in arbitration; rules differ and change, so check the forum's current position.
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.