Sonoma Risk Insurance Agency and Heffernan Insurance Agency have teamed up to distribute their new Contract Litigation Insurance (CLI) in California. Underwritten by Zurich, this policy helps to protect plaintiffs and defendants from having to pay their adversary’s attorneys’ fees should they lose their case.
Sixty-six percent (66%) of defendants now lose their contract disputes at trial according to the Bureau of Justice.
“With ‘Loser Pays’ provisions becoming more prevalent in the US legal system litigants are thinking twice before bringing even strong cases to court. Legal fees are often more than the damages. With Defendant Contract Litigation Insurance (DCLI) and Plaintiff Contract Litigation Insurance (PCLI), companies and individuals can protect themselves from having to pay their adversary’s legal fees and decide whether or not to pursue a case based on its merits,” said Kevin Martin, founder and chief executive officer of Sonoma Risk Insurance.
Contract Litigation Insurance (CLI) will offer a variety of benefits to businesses and individuals including:
- Reducing financial risk exposure
- Enabling companies/individuals to pursue strong claims that otherwise may have been abandoned due to financial liability
- Allowing general counsels and business owners to budget litigation costs more effectively
The distribution agreement provides Heffernan access to all of Sonoma Risk’s legal insurance policies, including its flagship product, Plaintiff Contract Litigation Insurance(TM) (PCLI), as well as the recently launched Defendant Contract Litigation Insurance(TM) (DCLI).
To provide the maximum amount of flexibility to businesses and individuals, PCLI can be bought within 60 days of the commencement of litigation and the DCLI policy can be purchased from time of service.
Zurich is backing the Defendant Contract Litigation Insurance (DCLI) and Plaintiff Contract Litigation Insurance (PCLI) policies.
“When we first launched this program with Sonoma Risk, we said attorneys who share information about the benefits of this new program with their clients are exhibiting their continued desire to uphold the ethical and professional responsibilities that come with practicing law,” said Damiano Servidio, head of Professional Services for Zurich’s Programs unit. “We are pleased that this message is resonating so quickly within the legal community and is helping us expand this new policy from where we first launched it in Los Angeles.”
Source: Sonoma Risk Insurance
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