Post Dispute Insurance

R50K to R10 Million Cover

Cover for the adverse award of costs

This policy protects a litigant (plaintiff or respondent) from the costs associated with an adverse award of costs. Primarily it does not fund the litigation, but the policy may be ceded to financial institutions to be used as collateral securily to provide a pool of funds to cash-flow this litigation.

In the United Kingdom and in some South African Courts, this policy has been accepted by Registrars of Courts as appropriate security for costs.

A powerful negotiating tool, the policy allows the insured litigant to negotiate without the threat of costs being a serious factor.

Underwriters will require an independent assessment of the probable outcome of the dispute. The cost of this assessment is borne by the insured and underwriters require at least a 50% probability that there will not be an adverse award of costs.

Key Features:

• Used when litigation or arbitration has already commenced
• Covers the adverse award of costs
• Can cover own fees and disbursements as well as opponent's taxed costs
• Limits the downside risk of litigation
• Available for arbitration or court litigation
• Very flexible premium payments
• May be used as collateral security to fund the litigation
• Applicable to all forms of litigation except defamation actions
• May be used as security for costs
• Covers adverse award of costs arising out of interlocutories