In most jurisdictions, the losing party in judicial or arbitration proceedings is ordered to pay the legal costs of the case. These costs can be significant, sometimes even exceeding legal fees and costs. This risk of adverse costs acts as a deterrent, preventing many claims with merit from being filed because claimants are unwilling to assume this risk.
- Possibility of taking legal action that otherwise wouldn’t be taken because of the high risk of potential adverse costs orders.
- Client protection against the economic risks resulting from an unfavorable outcome.
- Advice to the client in negotiating and concluding adverse costs insurance policies.
- Possibility to combine the coverage of adverse costs risk with other funding or monetisation solutions.