You Can Be Right And Still Lose.
As a plaintiff in a contract dispute, it’s clear to you that the other party has broken an agreement. You’ve made the decision to rectify the situation through litigation. You believe you have a strong case and will prevail in your dispute. But just because you think you’re right doesn’t mean you’re going to win.
More often than not, what starts out as a clear-cut case is soon up for grabs. Indeed, as the litigation continues, the uncertainties grow and legal fees mount. The financial risk is only heightened when there’s also the possibility of having to pay your adversary’s attorneys’ fees, should you lose your case. Courts routinely enforce this type of “loser pays” provision, and the fee awarded can be higher than the damages awarded to your adversary.
This is what a recent Bureau of Justice Department report found. When you 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 Plaintiff Contract Litigation Insurance (PCLI). No matter how strong you think your case may be.
Designed To Fill A Gap In Coverage.
Litigation can be filled with complexities and multiple causes of actions asserted in any given lawsuit, including a counter lawsuit by your adversary. You many already have insurance, such as commercial general liability (“CGL”), directors and officers (“D&O”), errors and omission professional liability (“E&O”) and employment practice liability (“EPLI”), that can cover certain defense costs. However, these types of policies do not cover having to pay your adversary’s attorneys’ fees. Only a PCLI policy helps ensure that you have coverage against this possibility.
Finally, Protection For Plaintiffs Like You.
Plaintiff Contract Litigation Insurance was designed specifically to cover you against the risk of having to pay your adversary’s attorneys’ fees, if unsuccessful in your contract claim. Not only does this policy cover you from the risk of financial exposure, it also provides a number of other important benefits, including gaining more budget certainty and increasing settlement negotiation power.
Strengthening Your Position In Settlement.
In addition to protecting you from financial exposure, a PCLI policy can also serve as a strategic asset in settlement. Since it removes the possibility of having to pay your adversary’s attorneys’ fees, you can gain greater negotiating power, perhaps even increasing the value of your settlement. The premiums are reasonable given the strategic benefits you receive from a PCLI policy.
Affordably Priced Options.
While PCLI 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 PCLI premium.
To account for this change over time, PCLI 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.
Plaintiff Contract Litigation Insurance policies are underwritten by individual member companies of Zurich in North America, a leading global insurance carrier rated “A+ superior” 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 PCLI Policy Must Be Customized.
No two lawsuits are ever alike. Everything from the reasons for the dispute 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 PCLI 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 address 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 Plaintiff 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.
