Transfer litigation risk before it materializes—and keep M&A transactions on track.
How We Help
Adverse Judgment Insurance (AJI) protects companies against the risk of a final, adverse judgment in high-stakes litigation. In exchange for a one-time premium, AJI guarantees insurance coverage up to a defined limit if a judgment is entered against the insured defendant.
Unlike traditional liability insurance, AJI can be purchased prospectively—before any judgment or settlement—to ring-fence litigation risk that falls outside existing policy limits or corporate risk tolerance. It is particularly valuable in M&A and financing transactions, where pending litigation can delay or derail deals. By transferring the potential exposure to an insurer, AJI allows transactions to close with confidence and without excessive reserves or price reductions.
Certum partners with leading carriers and reinsurers to underwrite AJI policies for complex, high-value cases, including commercial, securities, intellectual property, and class action matters. In some cases, AJI can also transfer defense costs, further reducing uncertainty and protecting cash flow. Certum’s funding arm can even finance the premium, ensuring that capital constraints never stand in the way of risk transfer.
Who We Help
Corporates
Protect against catastrophic litigation risk and enable transactions to proceed with certainty. AJI converts potential exposure into a fixed, insured outcome.
Protect against catastrophic litigation risk and enable transactions to proceed with certainty. AJI converts potential exposure into a fixed, insured outcome.
Close deals that might otherwise stall due to unresolved litigation. AJI eliminates “deal risk,” giving buyers, sellers, and lenders confidence to transact.
Close deals that might otherwise stall due to unresolved litigation. AJI eliminates “deal risk,” giving buyers, sellers, and lenders confidence to transact.
Offer clients cutting-edge risk-transfer solutions. AJI provides a unique differentiator for M&A and corporate groups pitching transactions encumbered by litigation.
Offer clients cutting-edge risk-transfer solutions. AJI provides a unique differentiator for M&A and corporate groups pitching transactions encumbered by litigation.
See how we facilitated a private equity sale amid pending wage-and-hour litigation
Waiting to Settle Cost a Company Millions
Using Class Action Settlement Insurance, the company transferred 100% of the settlement risk and saved millions of dollars in exposure and enterprise value.
