Litigation Insurance

Key points

• 01Seven product families, each answering a different exposure.
• 02Structures are bespoke: limit, attachment and conditions are negotiated.
• 03Frequently combined with litigation funding rather than replacing it.
• 04Availability and pricing follow merits, quantum, duration and enforceability.

After-the-Event

Cover taken out once a dispute exists, principally for costs risk.

• Opponent's costs and own disbursementsATE InsuranceCover taken out after a dispute has arisen, responding to adverse costs and, where agreed, own-side disbursements.
• Costs risk on substantial commercial claimsCommercial ATE InsuranceATE structured for high-value commercial litigation rather than volume consumer claims.
• Liability for the opponent's costsAdverse Costs InsuranceProtection against a costs order in favour of the opposing party.
• Your own legal costsOwn-Side Costs InsuranceCover for the claimant's own legal spend in defined unsuccessful outcomes.
• Experts, counsel and court feesDisbursement InsuranceProtection for disbursements incurred as a case progresses through its stages.

Capital Protection

Preserving an agreed portion of capital deployed into legal assets.

• Capital deployed into a case or portfolioCapital ProtectionDownside protection for capital committed to litigation, so an agreed portion of that capital is preserved if the case fails.
• A funder's deployed commitmentLitigation Funder Capital ProtectionCapital protection written for funders deploying non-recourse commitments into cases.
• Capital across a book of casesPortfolio Capital ProtectionProtection assessed across a cross-collateralised portfolio rather than a single matter.
• The value of a legal assetLegal Asset InsuranceRisk transfer supporting the balance-sheet or financing treatment of legal assets.

Security for Costs

Meeting security requirements without immobilising working capital.

• Cash otherwise tied up as securitySecurity for CostsInstruments intended to satisfy a security requirement without locking up working capital.
• Security ordered by a tribunalArbitration Security for CostsSecurity solutions structured for arbitral tribunals and institutional rules.
• Security supported by ATE and a deedATE-Backed SecurityATE policies supported by a deed of indemnity where the court accepts that structure.

Contingent Risk

Capping identified legal exposures, including on the defence side.

• A judgment or award you have wonJudgment PreservationProtection for the value of a judgment against reversal or reduction on appeal.
• Exposure to a judgment against youAdverse Judgment InsuranceCover capping the downside of an adverse determination for a defendant.
• Contingent litigation exposureLitigation Risk InsuranceBroad contingent-risk transfer around identified disputes and liabilities.
• A liability removed from the balance sheetLitigation Buyout InsuranceTransfer of an identified litigation liability to support a transaction or wind-down.

Law Firm Risk

Transferring part of the fee and WIP risk a firm carries.

• A firm's contingent fee exposureLaw Firm Litigation InsuranceRisk transfer for firms carrying WIP, conditional or contingent fee risk.
• Unbilled work in progressWIP InsuranceProtection for work in progress carried at risk on contingent matters.
• Conditional fee agreement riskCFA InsuranceCover addressing fees at risk under conditional fee arrangements.
• Damages-based agreement riskDBA InsuranceCover addressing fee risk carried under damages-based agreements.
• Contingent fee receivablesContingency Fee InsuranceProtection for contingent fee entitlements across matters.

Portfolio

Cross-collateralised structures across a book of matters.

• Risk across multiple mattersLitigation Portfolio InsuranceCover assessed across a defined book of disputes rather than case by case.

Arbitration

Costs, capital and award risk under arbitral regimes.

• Costs and capital in arbitrationArbitration InsuranceRisk transfer structured around institutional and ad hoc arbitration.
• An award you have obtainedArbitration Award InsuranceProtection for the value of an award through challenge and enforcement.
• Costs exposure in arbitrationArbitration ATE InsuranceATE structured for arbitral costs regimes.
• Capital deployed into arbitrationArbitration Capital ProtectionCapital protection for parties and funders in arbitral proceedings.

Frequently asked