Litigation Buyout

Uncertainty surrounding pending or threatened litigation can have a significant impact on a company’s operations. It can also influence equity raisings, securing debt financing as well as group M&A activity.

Litigation Buyout Insurance is a specialist niche insurance solution that is designed on capping or transferring known or potential contingent liabilities. The protection can help by removing or reducing the liability arising out of the litigation, which could otherwise mean a large potential uninsured liability.

Typically, the insurance is designed and written to cover a specific known risk or claim and can also cover an anticipated claim.

Key coverage benefits of Litigation Buyout Insurance

• Transfers an uncertain liability from the insured to the insurer;
• Reduces the insured’s concerns about conduct of the litigation or its outcome;
• Transforms contingent third-party claims into a quantified insurance cost allowing them to be precisely accounted for;
• Caps future financial risk: the premium is fixed and paid, irrespective of the outcome of the dispute.