Contract Litigation Insurance Reduces Financial Risk for Litigants

Contract litigation is a risky business. Trial outcomes for litigation involving contract disputes can be unpredictable and the proceedings are often complex. And just because you think you're right doesn't mean you're going to win. In fact, the Bureau of Justice Statistics has found that 33 percent of plaintiffs and 66 percent of defendants lose their contract disputes at trial. More often than not, what starts as a clear-cut case is soon up for grabs, accompanied by mounting legal fees. The financial risk is only heightened when there's also the possibility of having to pay your adversary's attorneys' fees, should you lose the case.

Contract Litigation Insurance (CLI) is a first-of-its-kind program, specifically designed to protect litigants from having to pay their adversary's attorneys' fees as a result of a fee shifting provision in a contract dispute. Underwritten by Zurich, an A+ A.M. Best* carrier, CLI removes much of the uncertainty from litigation, allowing litigants to feel more secure about their risk, while supporting an attorney's desire and professional responsibility to protect clients from financial exposure.

CLI helps:

• Reduce the financial exposure in litigation
• Gain budget certainty
• Close a gap in a litigant's coverage

And because a CLI policy removes the threat of having to pay an adversary's attorneys' fees, the protection it offers turns into empowerment, allowing litigants to proceed with a case, as well as become a strategic asset in settlement.

More information is available below.

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*Rating as of July 19, 2011. For more information, access www.ambest.com.

© 2012 The George Volk Agency. Policy issued by individual member companies of Zurich in North America. This coverage is offered only in certain jurisdictions and can be purchased only on a surplus lines basis from a licensed surplus lines producer. The description here is a summary only. It does not include all terms, conditions and exclusions of the policies and coverages described.