6992 E. Broadway Blvd.
Tucson, AZ 85710-2803

Phone: 520.571.1900
Fax: 520.571.9667

Ask any lawyer. They'll be the first to say that just because a client is right doesn't mean they are going to win. And more often than not, what starts out as a clear-cut case soon becomes up for grabs, accompanied by mounting legal fees.

The financial risk of litigation increases when a litigant must pay their adversary's attorneys' fees if they lose. Virtually all types of contracts provide that, if a lawsuit arises out of the contract, the loser will have to pay the winner's attorneys' fees (a "loser pays" provision). The "loser pays" risk can also arise from a state law (statute) without the need for a provision in a contract. Courts are required to enforce loser pays, and the fee awards can be higher than the damages. Contract Litigation Insurance (CLI) helps protect against the "loser pays" risk.

Contract Litigation Insurance (CLI) creates significant advantages in a lawsuit. Litigation is notoriously uncertain and costs can quickly spiral out of control. CLI helps provide you with better budgeting certainty. You simply budget for your own litigation costs along with the premium for a CLI policy to cover the potential award of your adversary's attorneys' fees. Since CLI removes the threat of paying your adversary's attorneys' fees, the protection it offers allows an insured to make better decisions in their lawsuit. A CLI policy can increase negotiating power, reduce your opponent's leverage and improve a potential settlement.

• Provides settlement leverage
• Seals a gap in coverage
• Removes a financial risk
• Enables better budgeting certainty

CLI coverage is purchased within the first 12 months of a litigation and covers the duration of the lawsuit. The premium is fully earned, with a one-time payment and no deductible. As a lawsuit progresses its degree of risk increases - as does the premium of CLI. Litigants can save on the cost of coverage by purchasing a policy as early as possible in their litigation.