A tailored insurance product that quarantines a client from the uncertainties inherent in outstanding litigation whether those uncertainties relate to the outcome or to the eventual amount of damages awarded. LBI will either cap an insured’s financial exposure or remove it altogether and will be designed to meet the particular needs of the insured and the specific characteristics of the dispute.
LBI enables clients to ring-fence liabilities which may arise from any current or anticipated litigation, arbitration or other dispute. This may be particular useful in an M&A context where an unresolved dispute would otherwise prevent an acquisition proceeding or would have a significant impact on the purchase price. An LBI policy can transform the inherently uncertain liability of litigation into a quantifiable insurance cost which can enable the parties to the transaction to focus on the business being acquired.
Underwriting and cover are tailored to each case, allowing the policy to be adapted to a dispute, regardless of its subject matter. As such, LBI can be adapted to cover proceedings ranging from a simple breach of a supply contract, a more complicated employment issue through to highly complex securities litigation and intellectual property disputes.
Covers settlement costs, legal costs, experts’ costs, damages and other potential liabilities arising in the context of a particular dispute.
Transfers an uncertain liability from the insured to the insurer.
Transforms contingent and inherently uncertain claims into a quantifiable insurance cost allowing for balance sheet certainty.
Caps future financial risk for the insured.
Releases business opportunities previously blocked by claims or disputes.
Eliminates potential obstacles to successful M&A transactions.
May enable favourable public disclosures, subject to the insurer’s agreement.
