Global
Litigation Insurance in Europe
Rules differ materially between member states; structure follows the forum.
EU
Brussels
50.85° N · 4.35° E
- Divergent costs rules
- Collective redress regimes
- Enforcement across borders
Illustrative. The forum decides which exposures exist at all: its costs rules, its approach to security and how its judgments travel.
How can litigation insurance work in Europe?
Rules differ materially between member states; structure follows the forum. That can shape which exposures dominate — divergent costs rules, collective redress regimes, enforcement across borders — and therefore which structures may be considered. Availability, admitted status and enforceability of any instrument depend on the forum and on policy terms, and are confirmed matter by matter, subject to underwriting.
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Forum file
Europe
EU
- Costs rule
- Varies by member state
- Weight of adverse costs
- Depends
- What tends to dominate
- Depends on the country
- Relevant cover
Risks to check first
- Divergent costs rules
- Collective redress regimes
- Enforcement across borders
Structure may follow the procedural rules of the forum, not the parties' nationality. General orientation, not advice; rules have exceptions.
Common risk types
Costs rules differ significantly across Europe.
Some jurisdictions shift costs by reference to statutory scales that may be modest relative to actual spend; others award limited recoverable costs. Collective redress has expanded under the EU Representative Actions Directive, implemented differently in each member state.
Relevant products
- ATE where costs shifting is meaningful
- Portfolio and capital protection for funders in collective proceedings
- Judgment or award cover in cross-border enforcement
Key considerations
Rules on third-party funding and contingent fees vary widely, and some states restrict them.
The forum's costs regime should be modelled before any structure is chosen.
Enforcement
Judgments move between EU member states under the Brussels I Recast Regulation.
Enforcement between the EU and the UK now depends on national law and relevant conventions.
Frequently asked
Do European courts make the loser pay costs?
Many do, but often by reference to statutory scales or limited tariffs, so the recoverable amount may be well below actual spend. The rules differ significantly between countries.
Is third-party litigation funding allowed in Europe?
It depends on the country; rules on funding and contingent fees vary widely and some jurisdictions restrict them.
Does the EU have class actions?
The EU Representative Actions Directive requires member states to allow collective actions by qualified entities for consumers, implemented differently in each country.
Is ATE insurance used in Europe?
Where costs recovery is meaningful, yes, and in collective proceedings alongside funding. Where recoverable costs are modest, other cover may matter more.
Are judgments enforceable across the EU?
Between EU member states, generally yes under the Brussels I Recast Regulation. Enforcement between the EU and the UK now depends on national law and relevant conventions.
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 products
Other jurisdictions