Contract Litigation Insurance

Lawsuits are filled with uncertainty. No outcome is ever guaranteed, whether on the plaintiff or defendant side of the suit. Adding to the risk of lawsuits is the risk of paying the opposing side’s attorney’s fees if they should prevail in the suit. An increasing number of contracts contain this prevailing party provision increasing the risk of litigation.

Contract Litigation Insurance insures litigants from the risk of having to pay their adversary’s attorneys’ fees pursuant to a prevailing party provision in a contract or state statute if unsuccessful.

How can this help litigants? This coverage can alleviate the pressure to settle due to the threat of having to pay your adversary’s legal fees. It removes some of the financial uncertainty from the lawsuit. The coverage can also provide leverage in settlement negotiations.

How does this coverage work? This coverage can be purchased usually within sixty days up to twelve months of a complaint being filed. The policy period lasts the duration of the litigation. The policy is triggered if the opposing party is found to be the prevailing party and the court orders policy holder to pay the opposing side’s legal fees.

Contact Keller National today at 216-965-0646 to find out more about Contract Litigation Insurance and how you can use it in your practice.

Previous post:

Next post: