Litigation Insurance

Class Action Settlement Insurance (CASI)

CASI is the only product on the market that allows companies to mitigate, cap, and transfer the financial risk of class action settlements. It provides a known, fixed cost to help businesses exit litigation with certainty. Ultimately, CASI eliminates the unintended consequences of an uncertain settlement payout, minimizes impact on a company’s P&L balance sheet, and allows for better budgeting and forecasting.

Certum Group can be retained at any stage of active litigation. Without any upfront cost or obligation, we provide expert analysis and consultation using our proprietary database of historical settlements, assess the potential financial risk and provide effective risk transfer solutions at an attractive cost.

CASI policy is issued only after a settlement agreement is reached. Underwritten on the paper of a leading national carrier which holds financial strength ratings of A++ from AM Best™ and AA+ from Standard & Poor’s™, CASI is a revolutionary tool for businesses when they need it most.

How it Works

• CASI is activated (and purchased) to transfer the settlement risk
• Coverage is available for the full spectrum of consumer-class cases including: fraud, mislabeling, products liability, statutory claims, and beyond
• A policy is enacted to cover all valid claims made by class members under the settlement agreement
• No deducible or self-insuring are required; only a one-time premium which transfers 100% of the aggregate settlement liability

Contingent Fee Insurance

Available for case portfolios at any stage of litigation, Contingent Fee Insurance mitigates financial risk for law firms by reimbursing fees and expenses in the event litigation is unsuccessful.

This risk will go through a process with insurance underwriters who specialize in creating litigation insurance solutions for known, threatened, or pending litigation. In exchange for a fixed premium, the company or law firm can obtain downside protection to prevent a total loss of expenses or work in progress (WIP) incurred in the prosecution of litigation.

This solution helps alleviate litigation fatigue by providing a plaintiff the security it needs to continue the fight. It also allows law firms to pursue claims they may otherwise turn down due to fear of not being able to collect sizable fees and expenses. And it facilitates settlement by providing the leverage needed to mitigate any notion that a cash-strapped plaintiff will enter into a less than favorable settlement.

How it Works

• The insurer performs diligence to conduct a risk underwrite and typically engages in a Q&A with the law firm
• If the risk is insurable, the insurer will propose policy terms and pricing
• A fixed, one-time premium transfers up to 100% of the risk to the insurer

Capital Protection Insurance

Capital Protection Insurance safeguards capital-debt, equity, or both—in single cases or groups of cases against an adverse ruling in litigation. Policies can also be ceded to a third-party lender, providing back leverage to the litigation funder for a more efficient cost of capital. 

Capital Protection Insurance can be leveraged at any stage of litigation; it’s deployed after a litigation funder makes an investment in a case or group of cases. This solution helps to ensure 100% capital preservation, help secure third-party debt so investments and be fully or partially refinanced or monetized and is seen as a more efficient cost of capital since third-party lenders will look to the insurance policy for collateral rather than the litigation assets

How it Works

• The insurer conducts an underwrite of the risk, followed by a Q&A with the litigation funder, law firm, and the plaintiff to resolve open items
• If the risk is insurable, the insurer will propose policy terms and pricing. If applicable, the insurer will work with third-party lenders to facilitate back leverage financing
• A fixed, one-time premium, transferring up to 100% of the capital risk to the insurer (usually without a deductible or self-insure requirement)