Comparison
Litigation Funding vs Litigation Insurance
One supplies capital. The other defines the downside.
What is the difference between litigation funding and litigation insurance?
Litigation funding provides capital to run a claim in exchange for an agreed share of proceeds. Litigation insurance transfers a defined risk — adverse costs, own costs, deployed capital or judgment value — in exchange for a premium. Funding changes who pays; insurance changes who carries the downside. They are frequently used together.
Key points
- Funding is capital. Insurance is risk transfer.
- Funding is repaid from proceeds; premium is payable per the policy terms.
- Funding usually shares the upside; insurance generally does not.
- Most substantial claims use one, the other, or both.
Side-by-side comparison
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When funding is the answer
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When insurance is the answer
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When both are used
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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.