What problems does litigation cause for commercial insurance brokers?
As a commercial insurance broker, litigation can be a tricky business for your clients. It’s seldom financially viable for companies to buy insurance for actions they may wish to bring in future – so legal expenses policies typically cover your clients in the event of a claim being brought against them (and not the reverse). It can be a difficult conversation to have to tell clients that their insurance policy portfolio can’t assist in their pursuit of justice.
For a client to fund legal action themselves, they will need to invest a considerable amount of money in the process: solicitor’s costs, barrister’s fees, expert witnesses, and court fees can add up to tens of thousands of pounds, or more. Even if they can afford it, firms could inevitably put this money to better use within their business – and there is no guarantee of success. With these pressures it is no surprise that to many of your clients it often seems easier to under-settle or to give up on a claim entirely.
What options are available for commercial insurance brokers seeking to add value to their client relationships?
If the policies you have provided your client can’t help them pursue a legal claim, there is an alternative; litigation funding and case specific insurance. For a pre-agreed fixed percentage of the eventual damages, a litigation funder will take on the risk and costs related to the case – giving your clients the chance to seek the redress they deserve. Furthermore, staged funding agreements, depending on the point at which a case settles, will maximise their returns – these can range from 5% when a matter settles quickly up to 35% if it goes all the way to trial.
As a broker, the principal advantages of introducing your clients to litigation funding and insurance are clear. By incorporating them into the advice to your clients, into your policies, it provides the opportunity to strengthen your relationship with them as ‘trusted advisor’.
Why Annecto Legal?
Annecto Legal’s network of legal experts and access to a multiple providers of litigation funding and insurance make it an excellent choice for your clients’ alternative funding needs. Our Board are well-versed in the needs and priorities of commercial insurance brokers, and can assist in developing specific ‘white-labelled’ litigation assistance products for your clients.
Annecto Legal is happy to receive enquiries from commercial insurance brokers acting on behalf of their clients. Talk to us today to explore their alternative finance options.
Annecto Legal SME Research
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Litigation Protection and Funding - Initial Enquiry
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