The hub
Litigation Insurance
Every product on this site answers one question: which part of the downside moves off your balance sheet, and on what terms.
- A judgment or award wonJudgment cover
- A judgment against youContingent risk
- Funder capital deployedCapital protection
- Law firm fees and WIPLaw firm cover
- Security for costsSecurity for costs
- The opponent's costsATE
- DisbursementsATE
- Own legal costsOwn-side ATE
Illustrative. The exposures a dispute can put on a balance sheet. What a policy responds to is set by its wording.
What is litigation insurance?
Litigation insurance transfers a defined financial risk arising from a dispute — the opponent's costs, your own costs, capital deployed into a case, the value of a judgment, or exposure to an adverse determination — to an insurance market in exchange for a premium. It does not fund the claim; it shapes the downside.
Key points
- Seven product families, each answering a different exposure.
- Structures are bespoke: limit, attachment and conditions are negotiated.
- Frequently combined with litigation funding rather than replacing it.
- Availability 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.Cover details
- Costs risk on substantial commercial claimsCommercial ATE InsuranceATE structured for high-value commercial litigation rather than volume consumer claims.Cover details
- Liability for the opponent's costsAdverse Costs InsuranceProtection against a costs order in favour of the opposing party.Cover details
- Your own legal costsOwn-Side Costs InsuranceCover for the claimant's own legal spend in defined unsuccessful outcomes.Cover details
- Experts, counsel and court feesDisbursement InsuranceProtection for disbursements incurred as a case progresses through its stages.Cover details
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.Cover details
- A funder's deployed commitmentLitigation Funder Capital ProtectionCapital protection written for funders deploying non-recourse commitments into cases.Cover details
- Capital across a book of casesPortfolio Capital ProtectionProtection assessed across a cross-collateralised portfolio rather than a single matter.Cover details
- The value of a legal assetLegal Asset InsuranceRisk transfer supporting the balance-sheet or financing treatment of legal assets.Cover details
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.Cover details
- Security ordered by a tribunalArbitration Security for CostsSecurity solutions structured for arbitral tribunals and institutional rules.Cover details
- Security supported by ATE and a deedATE-Backed SecurityATE policies supported by a deed of indemnity where the court accepts that structure.Cover details
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.Cover details
- Exposure to a judgment against youAdverse Judgment InsuranceCover capping the downside of an adverse determination for a defendant.Cover details
- Contingent litigation exposureLitigation Risk InsuranceBroad contingent-risk transfer around identified disputes and liabilities.Cover details
- A liability removed from the balance sheetLitigation Buyout InsuranceTransfer of an identified litigation liability to support a transaction or wind-down.Cover details
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.Cover details
- Unbilled work in progressWIP InsuranceProtection for work in progress carried at risk on contingent matters.Cover details
- Conditional fee agreement riskCFA InsuranceCover addressing fees at risk under conditional fee arrangements.Cover details
- Damages-based agreement riskDBA InsuranceCover addressing fee risk carried under damages-based agreements.Cover details
- Contingent fee receivablesContingency Fee InsuranceProtection for contingent fee entitlements across matters.Cover details
Portfolio
Cross-collateralised structures across a book of matters.
Arbitration
Costs, capital and award risk under arbitral regimes.
- Costs and capital in arbitrationArbitration InsuranceRisk transfer structured around institutional and ad hoc arbitration.Cover details
- An award you have obtainedArbitration Award InsuranceProtection for the value of an award through challenge and enforcement.Cover details
- Costs exposure in arbitrationArbitration ATE InsuranceATE structured for arbitral costs regimes.Cover details
- Capital deployed into arbitrationArbitration Capital ProtectionCapital protection for parties and funders in arbitral proceedings.Cover details
- 01
Initial outline
The dispute, the exposure and what needs protecting are set out.
- 02
Risk framing
Merits, quantum, costs and counterparty are mapped into an insurable structure.
- 03
Market engagement
The risk is presented to appropriate underwriting markets.
- 04
Terms
Indicative structures are compared on limit, attachment and conditions.
- 05
Placement
Wording, deeds and conditions precedent are agreed and the policy incepts.
- 06
Through the case
Cover is maintained and adjusted as the matter moves through its stages.
Types of litigation insurance compared
| Cover | What it protects | Typically bought by | When |
|---|---|---|---|
| After-the-event (ATE) | The other side's costs; own disbursements | Claimants | After a dispute arises |
| Security for costs cover | A defendant's costs, offered instead of cash security | Claimants facing a security application | When security is sought |
| Capital protection | Capital invested in a case or portfolio | Funders and investors | When capital is committed |
| Judgment preservation | A judgment's value against reversal on appeal | Judgment winners, funders, lenders | After judgment, pending appeal |
| Adverse judgment | Damages above an agreed level | Defendants | While a claim is pending |
| Contingent risk / buyout | An identified legal liability | Deal parties, companies | Around transactions or wind-downs |
| WIP / fee cover | A law firm's fees at risk | Law firms | On contingent matters |
| Award insurance | An arbitral award's value | Award creditors, funders | After the award |
Frequently asked
What is litigation insurance?
Litigation insurance is a family of specialist products that transfer defined financial risks arising from a dispute — adverse costs, own costs, deployed capital, judgment value or contingent liability — to an insurance market in exchange for a premium.
Who buys litigation insurance?
Corporates pursuing or defending substantial claims, law firms carrying fee risk, litigation funders protecting deployed capital, investors in legal assets, and insolvency practitioners realising claims.
Is litigation insurance available for any claim?
No. Availability depends on merits, quantum, costs profile, duration, enforceability and counterparty. Underwriters decline risks that do not meet those tests.
Is litigation insurance the same as legal expenses insurance?
Not quite. Before-the-event legal expenses cover is bought in advance, often bundled with other policies. Commercial litigation insurance is usually bought after a dispute arises and underwritten on that dispute.
Can litigation insurance be combined with litigation funding?
Yes, and it often is: funding pays the costs of running the case, and insurance caps what happens if it fails.
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.
Keep reading
Understand the exposure.
Technical analysis of litigation risk, how cover is underwritten and what drives cost — written for general counsel, funders, law firms and investors.
General information only. It is not advice and not an offer of insurance.