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
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January 12, 2026
Litigation finance has become an essential tool for modern litigation strategy — but with its growth has come a wave of discovery requests seeking information about funding arrangements. These requests are improper, burdensome, and legally unsupported. To help lawyers and litigants push back with confidence, Certum has released a new Model Brief Opposing Discovery of Litigation Funding—a comprehensive, practitioner-oriented document designed to equip litigators with the strongest arguments, cases, and frameworks available. This publication is now available for free download . The Model Brief is part of Certum’s growing library of thought leadership and practical guidance on litigation finance and insurance. That library includes Certum’s Guide to Litigation Funding and its annual survey of in-house counsel . Across federal and state courts, parties continue to seek discovery into litigation funding sources and materials, often as a tactic rather than a legitimate inquiry into claims or defenses. These efforts raise serious issues: Privilege and work-product concerns Chilling effects on access to justice Attempts to shift focus away from the merits Increased litigation costs and delays Yet for many lawyers, responding to these requests requires reinventing the wheel. Certum’s model brief solves that problem. It provides a structured, persuasive, and research-backed response that can be adapted swiftly to any case. Click here to download the brief.

By Certum Team
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January 6, 2026
Bloomberg recently interviewed Certum Group’s William Marra as part of its coverage of efforts by commercial liability insurers to require the disclosure of third-party litigation funding agreements. Marra explained to Bloomberg that “[t]he disclosure of litigation funding risks putting impecunious litigants at a systematic disadvantage in our legal system,” adding mandatory disclosure “can disclose to defendants very valuable information, including who has funding, and critically, who does not have funding.” Marra further responded to the argument that litigation funders might fuel frivolous litigation. “To the contrary, the evidence shows that funders serve as a very effective screen, only backing the most meritorious cases, and if anything, likely resulting in fewer weak cases getting filed,” Marra said. This statements builds on arguments Marra previously advantaged in a Vanderbilt Law Review article about litigation funding. The Bloomberg article is available here .

By Certum Team
•
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Certum’s William Marra has been elected to the Board of Directors of the International Legal Finance Association, the litigation finance industry’s leading advocacy group. Will joins five other new members of ILFA’s Board, including: Marcel Wegmüller, the co-founder and CEO of Nivalion; David Perla, the Vice Chair of Burford Capital; Erik Bomans, the CEO of Deminor Recovery Services; Kacey Wolmer, the CEO of Contingency Capital; Rob Rothkopf, the founder and Managing Partner of Balance Legal Capital. “We are honored to welcome Marcel, David, Erik, Kacey, Rob, and William to ILFA’s Board of Directors,” said Paul Kong, the Executive Director of ILFA. “Each brings exceptional expertise, deep industry insight, and a demonstrated commitment to the responsible growth of legal finance. Their leadership will strengthen ILFA’s work to promote transparency, expand access to justice, and support the continued global development of our industry.” “I am delighted to join ILFA’s Board and assist with its important public policy work,” Will Marra said. “Litigation finance helps level the playing field and ensures cases are resolved based on their merits, not the size of a party’s checkbook. LFA’s advocacy for claimholders who need litigation finance is more important now than ever before.” The International Legal Finance Association (ILFA) represents the global commercial legal finance community, and its mission is to engage, educate and influence legislative, regulatory and judicial landscapes as the voice of the commercial legal finance industry. It is the only global association of commercial legal finance companies and is an independent, non-profit trade association promoting the highest standards of operation and service for the commercial legal finance sector. ILFA has local chapter representation around the world.
