Global
Litigation Insurance in International Arbitration
Seat, institution and enforcement route drive the structure more than nationality.
ARB
London
51.51° N · 0.13° W
- Tribunal-ordered security
- Award challenge
- Enforcement across states
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 International Arbitration?
Seat, institution and enforcement route drive the structure more than nationality. That can shape which exposures dominate — tribunal-ordered security, award challenge, enforcement across states — 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
International Arbitration
ARB
- Costs rule
- Tribunal discretion
- Weight of adverse costs
- Depends
- What tends to dominate
- Security, award challenge, enforcement
Risks to check first
- Tribunal-ordered security
- Award challenge
- Enforcement across states
Structure may follow the procedural rules of the forum, not the parties' nationality. General orientation, not advice; rules have exceptions.
Common risk types
Tribunals have broad discretion over costs, though many apply a costs-follow-the-event approach.
Security for costs is increasingly requested against funded claimants. After the award, set-aside or annulment and enforcement against unwilling respondents — including states — are the main risks.
Relevant products
Arbitration ATE, security for costs cover, capital protection for funders, and award or non-payment cover after the award.
Key considerations
The ICC Rules (2021) and ICSID Rules (2022) require disclosure of third-party funders, and other institutions have similar provisions.
Whether an insurer must be disclosed depends on the rules and the insurer's role.
Enforcement
Commercial awards are enforced under the New York Convention.
ICSID awards are subject only to the Convention's internal annulment procedure and are enforced as final judgments in contracting states, though sovereign immunity from execution still applies.
Frequently asked
Do tribunals award costs against the losing party?
Many do, but tribunals have broad discretion and may apportion costs differently depending on the rules, the conduct of the parties and the outcome.
How are arbitral awards enforced?
Commercial awards are enforced in over 170 contracting states under the 1958 New York Convention. ICSID awards are enforced under the ICSID Convention, subject to sovereign immunity from execution.
Can a tribunal order security for costs?
Yes, most institutional rules and many arbitration laws give tribunals power to order security, often considering the claimant's finances and any funding.
Must third-party funding be disclosed in arbitration?
The ICC Rules 2021 and ICSID Rules 2022 require disclosure of third-party funders, and other institutions have similar provisions.
Can an ICSID award be annulled?
ICSID awards cannot be set aside by national courts but can be annulled by an ad hoc committee on the limited grounds in the ICSID Convention.
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
Other jurisdictions
Guides
See also