Contingent Liability Insurance


We help you to negotiate the allocation of liabilities for identified contingent risks.

Contingent Liability Insurance

 

Contingent Liability Insurance

The allocation of liabilities for identified contingent risks is typically heavily negotiated between parties. These exposures are often the subject of purchase price negotiations, specific indemnities, and/or escrow arrangements.

Contingent Liability Insurance may eliminate or effectively mitigate the parties’ exposures to these risks — enabling the transaction to close more quickly, without either party assuming undue risks or limiting or impairing the sales proceeds from the transaction.

Coverage

Risks that might be eligible for coverage include potential:

• Litigation exposures

• Environmental exposures

• Intellectual property infringement claims

• Employment matters and disputes

• Accounting methods adopted in the past

 
 

Working Together

Contingent Liability and Litigation cases typically require tailor made solutions. We assess and analyse every client request individually. We only work with insurers and investors who are financially stable with a strong reputation in the sector.

 

Other Forms of Litigation Support

  • ATE Insurance policy can provide cover for legal costs incurred in pursuing or defending legal proceedings: when a party loses its case, that party may (depending on the forum and jurisdiction) find itself liable to pay not only its own legal costs, but also those of the opponent, under the “loser pays” principle. These costs include the opponent’s legal fees, as well as other expenses or disbursements associated with the legal action, such as court fees, legal and expert fees, and copying/printing costs. The potential liability of the losing party can, therefore, be substantial and difficult to predict.

  • Following a trial court judgment is obtained, there is always a risk that the appellate court will reverse (in whole or in part) or reduce a damages award. Judgment Preservation Insurance (JPI) allows a plaintiff who prevailed at the trial court level to insure all or part of a damage award while an appeal is pending. Put simply, JPI is a targeted way to ring-fence appellate risk while allowing companies with a favorable judgment to immediately leverage the financial benefits of the award. JPI can be used in the context of summary judgment awards, trial verdicts, and arbitration wins

  • After obtaining a favourable judgment, the enforcement process can be a long and costly one. We work closely with specialist funders who can finance the enforcement process in return for a share in the recovery. It may also be possible to monetise the award by means of finding an investor for a claim.