We provide strategies that enable defendants to manage the level of exposure to legal expenses and disbursements that they wish to retain in the event that they fail in their defence of the claim being made. We have also helped defendants place a cap on their exposure to damages that might be awarded should the claimant prevail.
Our standard approach is to use an adverse outcome insurance that can indemnify opponent AND/OR own-lawyer costs and disbursements in litigation and arbitration
Should a case be lost at trial, legal fees and disbursements up to the pre-agreed limit of indemnity will be reimbursed.
The limit of indemnity can cover up to 100% of an adverse cost award and any own-side disbursements (e.g. to barristers and expert witnesses) and up to 75% of own side legal fees. Damages are not indemnified.
A premium is paid, typically, in three instalments to reflect the stages of dispute resolution. If a dispute settles during one of the stages, no further premium instalments are payable. The premium is calculated as a percentage of the total limit of indemnity with each policy and premium plan individually designed.
If a defendant defeats a claim at trial or settles with the claimant pre-trial, the insurance premium will represent a modest cost compared to the damages that would have been payable if the claim was not defended. If the defendant loses at trial, the only cost to the defendant of defending the claim will be the insurance premium and any deductible/excess of costs incurred over the limit – this is a significant reduction in the defendant’s money at risk.
Depending on the circumstances, our solutions can also include a damages cap that can indemnify an award made against a defendant
Should a case be lost at trial, the defendant will pay the damages award up to a pre-set limit.
The policy will provide an indemnity for a range of damages above this pre-set limit and will pay any damages that fall in this range. Typically, this range will represent what the defendant perceives as a calamitous outcome e.g. beyond cashflow availability or imperilling a business transaction.
A premium is paid which will be bespoke to each situation.
“QLCC” and “Quantum Legal Costs Cover” are trading names of Harbour Underwriting Limited.
Harbour Underwriting Limited is an appointed representative of Bennett Gould & Partners (Dorset) Limited which is authorised and regulated by the Financial Conduct Authority.
Harbour Underwriting Limited. Registered Office: 4th Floor, 8 Waterloo Place, London, SW1Y 4BE.
Registered in England & Wales No. 10384185