Being Put On The Defense Can Be Off Putting.
As a defendant who has been hit with a contract lawsuit, it’s not uncommon for your emotions to run the gamut – from surprise and shock to disappointment and outrage. You know that you’ll be spending money on the services of an attorney, not to mention spending a lot of your own time fighting a legal battle. Although you’re confident that you’re in the right and can prove it, the reality is the odds are not in your favor.
That’s what a recent report from the Bureau of Justice Department found. When you also factor in the uncertain nature of litigation and the financial risk involved, including having to pay your adversary’s attorneys’ fees, a strong case can be made for you to obtain Defendant Contract Litigation Insurance (DCLI). No matter how strong you think your defense may be.
Designed To Fill A Gap In Coverage.
You may already have insurance that provides coverage for defense costs, such as commercial general liability (“CGL”), directors and officers (“D&O”), errors and omission professional liability (“E&O”) and employment practice liability (“EPLI”). While these types of policies can cover defense and indemnification of a portion or all of a settlement or judgment, they do not cover having to pay your adversary’s attorneys’ fees. Only a DCLI policy helps ensure that you have coverage against this possibility.
Financial Protection That’s Also A Game-Changer In Settlement.
With a DCLI policy you don’t have to feel or act like you’re always on the defense. That’s because the policy not only protects you from financial exposure, it also can strengthen your negotiating power in settlement. Since the DCLI coverage eliminates the risk of having to pay your adversary’s attorneys’ fees, you have the opportunity to negotiate a significant reduction in settlement payout. The premiums for a DCLI policy are reasonable given the strategic benefits you receive from the policy.
Affordably Priced Options.
While DCLI premiums are affordable, you can save on the cost of coverage by purchasing a policy as early as possible. That’s because typically, as a lawsuit progresses, the degree of uncertainty increases – as does the price of the DCLI premium.
To account for this change over time, DCLI policies are offered through a tiered pricing structure that’s tied directly to the increased level of risk reflected in key stages of the lawsuit, including the initial case filing or service of the complaint and the motion to dismiss/answer and discovery periods.
Underwritten By A Global Leader.
Defendant Contract Litigation Insurance policies are underwritten by individual member companies of Zurich in North America, a leading global insurance carrier rated “A+” by A.M. Best.* Zurich is an insurance provider for the majority of Fortune 100 global companies and offers programs to help reduce risk exposure in more than 170 countries.
Every Lawsuit Is Unique. So Every DCLI Policy Must Be Customized.
No two lawsuits are ever alike. Everything from the plaintiff’s allegations to the attorneys’ fees associated with the proceedings can vary greatly from one case to another. This is why Sonoma Risk’s Litigation Insurance Specialists always work closely with you and your attorney every step of the way and never take a cookie-cutter approach to writing a DCLI policy.
Nowhere is this more evident than in Sonoma Risk’s free underwriting review. Our Litigation Insurance Specialists utilize a thorough review process that includes working with you and your attorney to answer a number of key questions about the case, such as:
- What type of law firm does the opposing side have?
- How long do you think the case will last?
- Is this the type of case that will be appealed?
- What has your attorney told you about your own fees to litigate the case?
- Do you believe the adversary will fight this to the end?
Our Claims Department also applies this same high level of attention to detail and customer care when processing claims to help ensure they are conducted in the most professional and expedient fashion.
To find out more about Defendant Contract Litigation Insurance
and schedule a free underwriting review by one of our Litigation Insurance Specialists,
call us today at 888.388.7742.
*Rating information is provided as of 1/1/2011. For information about the ratings of Zurich American Insurance Company, access the ratings section on www.zurichna.com. For more complete financial information about the Zurich Financial Services Group and ratings for Zurich Insurance Company Ltd., access www.zurich.com.
