September 6, 2024
The Benefits of Leveraging Litigation Funding With Insurance

What is Litigation Funding?
- Most litigation funders use a traditional funding model by providing non-recourse capital to a law firm or claimholder in exchange for a share of recovery.
- The funder’s return is normally calculated by charging a specified interest rate, applying a multiple of invested capital, a percentage of the proceeds, or a combination of the three.
- For case portfolios, especially diversified portfolios, litigation funding can be combined with insurance to even further reduce the financial burden of legal proceedings and litigation funding, which brings us to our next point.
What is Litigation Insurance?
- Instead of going to the funding market first, companies or law firms can look to insurance to remove the outcome risk.
- Just like with a litigation funder, the risk goes through an underwriting
process, but this time, by 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 through insurance to prevent a total loss of expenses or attorney’s fees incurred in the prosecution of the litigation.
What are the Key Benefits of Leveraging Litigation Funding Coupled with Insurance ?
- By leveraging litigation insurance in combination with funding law firms or claimholders can secure financing at the most-efficient cost of capital because the insurance turns the financial from non-recourse to recourse because the insurance is now the financing collateral, not the litigation.
- By removing the risk of loss, the cost of litigation funding capital reflects the new paradigm and therefore becomes less expensive and more efficient, allowing law firms and plaintiffs to achieve better results than if they use litigation funding alone.
- The bottom line is that when you combine litigation funding with insurance for case portfolios you can efficiently transfer litigation risk, at a much lower cost of capital, because you have downside risk protection, which increases upside potential.
What Sets Certum Group Apart From Other Litigation Funders and Insurers ?
- At Certum Group, we created the largest litigation risk transfer platform on the market which is the first and only one that combines litigation funding, litigation insurance solutions on both sides of The V, along with monetization latent litigation assets and premium finance.
- The solutions are available as stand-along products, or in combination with each other, such as litigation funding + insurance in order to meet the clients legal, business, and financial objectives.
- Our overarching goal is to bring certainty to the uncertain world of litigation through our suite of litigation risk transfer solutions.
The post The Benefits of Leveraging Litigation Funding With Insurance appeared first on Certum Group.
Recent Content

By Certum Team
•
March 5, 2026
Above the Law, a leading blog focused on the legal industry, recently highlighted Certum Group’s litigation finance fellowship, noting the opportunity for law students and business students to gain “a four-week, hands-on immersion in what it actually looks like when capital meets complex litigation.” “To succeed, lawyers need to understand not only doctrine but also finance. Law schools are beginning to reflect that shift, and students want to understand it,” Certum’s William Marra told Above the Law. “Our Summer Fellowship is about opening that door for both law and business students, and giving them meaningful exposure to the capital side of litigation.” Applications for the fellowship are due on March 31, 2026, and should include a resume, law school transcript, and a brief 250-word statement of interest. Applications should be sent to SummerFellowship@CertumGroup.com . Above the Law’s coverage is available here , and Certum’s application page for the fellowship is available here .

By Certum Group
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March 2, 2026
For the third consecutive year, Certum Group will host one or more summer fellows, introducing accomplished law students and business students to the growing field of litigation finance. The Certum Group Litigation Finance Fellowship provides top law students with an opportunity to gain hands-on experience in the rapidly growing fields of litigation finance and litigation insurance. Fellows will evaluate litigation funding submissions, draft memoranda analyzing legal and damages issues, help structure and negotiate funding agreements, and contribute to marketing and business development initiatives. They will work closely with Certum’s experienced team of litigation finance, litigation insurance, and investment professionals. Throughout the program, Fellows will develop a practical understanding of how claimholders, law firms, insurers, and capital providers assess litigation risk — and how capital can be deployed as a strategic tool in complex disputes. Further information about the fellowship and instructions about how to apply are available here.

By Certum Group
•
February 24, 2026
Columbia Law School’s blog on corporations and the public markets, The CLS Blue Sky Blog, recently featured the scholarly work on litigation finance written by Indiana University Business School Professor Suneal Bedi and Certum’s William C. Marra. In their blog post, Bedi and Marra discuss their article Litigation Finance in the Market Square , which was recently published in the Southern California Law Review. Their work reframes litigation finance as a capital markets innovation rather than solely a civil justice mechanism. While much of the public debate has centered on questions of disclosure, control, and settlement incentives, Bedi and Marra emphasize that legal claims often represent significant but illiquid contingent assets on a firm’s balance sheet. When policymakers regulate litigation finance, they are regulating not just the legal business but the capital markets. And they are regulating capital markets in a way that is more likely to harm small and medium-sized enterprises (SMEs) while protecting large companies from competition. The full blog post is available here.
