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International Arbitration Insurance
Risk transfer structured around institutional and ad hoc arbitration.
- A judgment or award won
- A judgment against you
- Funder capital deployedThis cover
- Law firm fees and WIP
- Security for costs
- The opponent's costsThis cover
- Disbursements
- Own legal costs
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
What is International Arbitration Insurance?
International Arbitration Insurance is a form of litigation risk transfer that may be arranged around costs and capital in arbitration. Risk transfer structured around institutional and ad hoc arbitration. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
International Arbitration Insurance
Not a policy. A specimen to show how this cover is structured. Cover exists only when a policy is issued, on its own wording.
- Terms
- Terms, where available, are set case by case through underwriting.
- Protects
- Costs and capital in arbitration, depending on policy terms.
- Terms
- Limit, premium and conditions are set by underwriting on the specific risk.
Clause 1
The insured
Who it is for
Claimants and funders in commercial and investment-treaty arbitration, including arbitrations against states and state entities.
Clause 2
Insuring clause
What risks can be protected
Adverse costs awarded by the tribunal, own costs, capital deployed, and — once an award exists — its value through challenge and enforcement.
Clause 3
Operation of cover
How it works
Arbitration cover follows the procedural timetable of the reference rather than a court's.
Tribunals have wide discretion on costs, and enforcement against the respondent can take years, so cover is designed around both the award and what happens after it.
Clause 4
Underwriting
Underwriting factors
Arbitration adds its own questions to the usual merits and quantum review: the seat and applicable rules, the tribunal's approach to costs, the respondent's assets and willingness to pay, and — for awards against states — immunity and enforcement history.
Underwriters also consider disclosure obligations for funders and insurers under the applicable rules.
Clause 5
Proposal documents
Information required
- (a)The request for arbitration or statement of claim;
- (b)The arbitration agreement and rules;
- (c)Counsel's merits and quantum analysis;
- (d)A costs budget through the award;
- (e)The respondent's asset position; and
- (f)Where an award exists, the award and any challenge filed.
Clause 6
Limit, premium and staging
Potential structure
- (a)Staged ATE through to the award;
- (b)Capital protection for the funder; and
- (c)Separate award or enforcement cover where the respondent's willingness to pay is uncertain.
Clause 7
Alternatives
Alternatives
- (a)Self-funding;
- (b)Funder-provided adverse costs cover; and
- (c)Security posted by the claimant.
Clause 8
Territory
Jurisdiction notes
- (a)The seat decides supervisory court jurisdiction and set-aside risk;
- (b)The New York Convention governs recognition of most commercial awards; and
- (c)ICSID awards follow the Convention's own annulment and enforcement regime.
Several institutions' rules now require disclosure of third-party funders, which may extend to insurers in some circumstances.
Specimen for explanation only. Terms, limits and exclusions are set by underwriting on each matter and by the wording issued.
Frequently asked
Can you insure the costs of an international arbitration?
Yes. Arbitration ATE can cover adverse costs awarded by the tribunal and own disbursements, and capital protection can cover a funder's investment. Cover follows the procedural timetable of the arbitration.
Must insurance be disclosed in an arbitration?
Several institutional rules, including the ICC Rules 2021 and ICSID Rules 2022, require disclosure of third-party funding. Whether an insurer must be disclosed depends on the rules and the insurer's role; take advice on the specific rules.
Is International Arbitration Insurance available for my dispute?
Availability depends on the merits, the quantum, the costs profile and the counterparty. Every risk is assessed individually and no cover exists until a policy is issued.
Does this quote a price?
No. Pricing is a function of the specific risk and is never quoted in the abstract. Nothing on this page indicates the cost or availability of cover.
Can it be combined with litigation funding?
Frequently, yes. Funding supplies capital; insurance defines the downside. The two are often structured together.
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.