When you are looking at resolving a commercial dispute, there can be a lot of potential costs involved in pursuing it. Whether it be legal fees or compensation costs, all of it depends greatly as to whether or not the claim made is successful or not. If the claim is successful, then the costs are usually mitigated by the financial award that has been given. However, in the event that the dispute is unsuccessful, then you could be asked to pay the costs of those involved in the case.
Nevertheless, the potential risks and costs involved in pursing a claim where you have been treated unfairly shouldn’t prevent a company or an individual, where it has a strong chance of being successful, going ahead with it. There are a variety of different litigation insurance products available that can help with this, and our expert advisers at Litigation Backing can help you find the right one for you.
Do I need litigation insurance?
Whilst it is not a legal obligation for you to take out this kind of insurance if you are taking out litigation finance, it is something that is regularly sold with it and encouraged by the litigation finance funders we work closely with. This is because it can provide you with additional peace of mind in the event you lose your claim, and it still gives you compensation to both you and your lawyers.
Types of litigation cover
The litigation finance providers we work with offer a number of different litigation insurance policies.
All of which depends on your own individual requirements as well as the circumstances. Available cover that you can choose from includes:
- Own side’s budget: this type of insurance is taken out with the intention of covering you as the claimants litigation budget. This will icnlude both future and current costs. With this type of insurance, the claimant finances the litigation or arbitration but uses this policy in order to cover a certain amount paid, or all of it. In the event that your dispute is unsuccessful, the litigation insurer will reimburse the client for the costs incurred, including insured legal fees. It is also possible to use third-party litigation funding for your claim at the same time. Or, it can also be useful for businesses with good liquidity, who are simply looking to manage their overall litigation budgets.
- Fee shifting: generally speaking, litigation insurance is seen as a way of insuring against the risk of ‘adverse costs’. What this means, is the policyholder’s liability for the opponents legal costs if your claim is unsuccessful, and a costs award is made against you.
- Security for costs: as litigation financing specialists, we are well-equipped for dealing with clients facing issues regarding potential security for cost applications, including providing litigation insurance.
Premiums for litigation insurance
The premiums incurred for taking out litigation insurance are looked at on a case-by-case basis, focusing on the claimants indivdiual requirments and circumstances. Some clients prefer their insurance policies to be deferred so that the insurer is only paid if the claim made is a success. Others prefer that if the case is not successful, that the insurer does not receive a premium and therefore is liable to make a claim
Litigation insurance with Litigation Backing
The dedicated team at Litigation Backing can help you to find the right insurance policy for you. Our experts all have a legal background in litigation, and work closely with reputable litigation providers across the country. By making an application online through our website and providing details about the claim you are intending to make, we can search for the best policy for you. Providing us with this information will take you less than 10 minutes. After we receive these details, we will assess your claim internally before putting you in touch directly with the funder most likely to proceed and help with your case. It is as easy as that, so why not apply today?