Tool 01
Adverse Costs Exposure
Costs risk compounds stage by stage and depends on the costs regime of the forum. Model the shape of it before deciding what to transfer.
How much could I have to pay the other side if I lose?
In loser-pays forums, typically a substantial share of the winner's reasonable costs, which grows with each stage of the case. This tool models that build-up on illustrative assumptions so you can see the likely range before deciding whether to insure it. The real figure depends on the court's assessment of costs.
Illustrative position
Illustrative example only
- Own-side costs incurred
- £2.5m
- Adverse costs exposure
- £1.8m
- Total costs exposure
- £4.3m
- Carried by the insured limit
- £2mSubject to underwriting, policy terms and the limit actually agreed.
- Retained by you
- £2.3m
Exposure against claim value
17.3%
The proportion of the amount in dispute that the costs risk alone represents at the selected stage.
How to read this
- Own-side costs are modelled as the proportion of your budget incurred by the selected stage.
- Adverse costs apply an assumed recovery proportion to the opponent's budget (65% for loser pays, 35% for partial shifting). These are illustrative assumptions, not statistics: recovery is assessed by the court and is rarely full.
- The insured limit is applied to the combined figure; anything above the limit stays with you.
- Nothing here reflects premium, attachment point, exclusions or whether an underwriter would write the risk.
From illustration to real terms
These tools describe how exposure is measured. Terms, limits and availability are decided by underwriting on the facts of the matter. See how cover is underwritten.
How cover is underwrittenGeneral information only. This tool does not provide insurance, legal, investment or financial advice, does not quote premiums, and does not indicate that cover is available.
All figures are illustrative and used to explain how exposure is measured. They are not indicative of pricing, terms or the availability of cover.