Asia

Litigation Buyout Insurance

Litigation Buyout Insurance provides cover for a threatened, anticipated or current litigation, arbitration or dispute by ring-fencing the issue or providing cover in excess of the likely outcome.

Litigation, whether it be any form of dispute resolution or arbitration can be a complex and an unpredictable process, especially in multi-jurisdictional matters which can lead to further complexity and greater uncertainty. Clients are looking to advisers for robust advice and confident execution in order to deliver positive outcomes.

As a business going through a dispute, or as a law firm or litigation funder assisting with it, there are a range of tailored solutions available to mitigate the risk and manage exposures based on the subtleties and complexities of each matter.

Solutions include:

After The Event (ATE) Insurance
An ATE insurance policy covers the insured if they have to pay their opponent’s legal costs and solicitor costs/disbursements incurred as a result of bringing a legal action. ATE insurance is now commonly used more commercially, for example in contractual disputes.

Legal Expenses Insurance
This can cover the insureds’ legal liability for opponents’ costs following an Adverse Costs Order. The insureds’ own disbursements are also insurable.

Security for Costs
This cover helps to address security for costs orders. This solution is especially useful for claimants who lack financial resources or would prefer to avoid committing cash resources.

Appeal Protection Insurance
This cover helps to address security for costs orders. This solution is especially useful for claimants who lack financial resources or would prefer to avoid committing cash resources.

Artibration Award Default Insurance
This removes the risk of non or late payment following a successful international arbitration against a sovereign state. It negates the need for claimants to pursue lengthy and expensive enforcement proceedings.

There are now a number of A-rated insurers with dedicated litigation capacity available globally and per-risk limits of $500m+ are available. In addition, insurers are open to look at risks in a number of jurisdictions.

Process & Pricing

Every dispute is different and we pride ourselves in taking the time to understand the nuances and subtleties of your dispute. We work closely with you to define the risk and therefore design the appropriate solution.

Premium rates historically used to exceed 10-12% of the policy limit. Whilst certain risks remain in that price bracket, we are now beginning to secure terms for 3-8% of the policy limit.