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Litigation Portfolio Insurance
Cover assessed across a defined book of disputes rather than case by case.
- A judgment or award won
- A judgment against you
- Funder capital deployedThis cover
- Law firm fees and WIP
- Security for costs
- The opponent's costs
- 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 Litigation Portfolio Insurance?
Litigation Portfolio Insurance is a form of litigation risk transfer that may be arranged around risk across multiple matters. Cover assessed across a defined book of disputes rather than case by case. Terms, where available, are set case by case through underwriting.
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Schedule · specimen
Litigation Portfolio 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
- Risk across multiple matters, 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
Funders, law firms and corporates with a book of disputes — including corporate claimants with several claims against different counterparties.
Clause 2
Insuring clause
What risks can be protected
Costs, capital or fees at risk across the book, with cover responding to aggregate outcomes rather than to each case.
Clause 3
Operation of cover
How it works
Cases are pooled.
Wins across the book offset losses before the policy responds, which lets underwriters offer terms on the portfolio that would not be available case by case.
Clause 4
Underwriting
Underwriting factors
Portfolio underwriting weighs diversification: the number of cases, how correlated they are, concentration by opponent, forum or legal theory, and the manager's selection discipline.
A portfolio can often attract terms that no single case in it would.
Clause 5
Proposal documents
Information required
- (a)A schedule of matters with stage, budget and expected value;
- (b)Merits material for the larger cases;
- (c)Eligibility criteria for future additions;
- (d)Historic performance data; and
- (e)The cross-collateralisation and waterfall terms.
Clause 6
Limit, premium and staging
Potential structure
- (a)Aggregate limit and attachment;
- (b)Eligibility criteria for adding cases;
- (c)Periodic reporting; and
- (d)A premium linked to overall portfolio returns.
Clause 7
Alternatives
Alternatives
- (a)Case-by-case ATE or capital protection;
- (b)Portfolio funding; and
- (c)Holding the diversified book without insurance.
Clause 8
Territory
Jurisdiction notes
A portfolio can span forums, but the underwriter will look at each forum's costs rules and enforcement risk.
Heavy concentration in a single forum or a single legal question reduces the diversification benefit.
Specimen for explanation only. Terms, limits and exclusions are set by underwriting on each matter and by the wording issued.
Frequently asked
Why insure a portfolio of disputes instead of each case?
Diversification. Wins across the book offset losses before the policy pays, so terms can be available for the portfolio that no individual case would attract.
Who uses portfolio insurance?
Funders, law firms with contingent books, and corporates with several claims against different counterparties.
Is Litigation Portfolio 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.