Zurich, a provider of property and casualty insurance in North America and globally, now offers Contract Litigation Insurance (CLI).
According to the Bureau of Justice Statistics, the most common form of civil litigation in the U.S. is contract litigation. Further, civil litigation in the U.S. has increased by an average of over five percent for the last three years.
The risk of paying an adversary’s attorneys’ fees is a key risk real estate companies involved in litigation face. In response, Zurich North America Commercial’s real estate practice has collaborated with Sonoma Risk Insurance Agency to offer CLI to help reduce litigation exposure and costs for real estate businesses.
“In the current economic climate, multiple issues threaten to reduce a development’s profitability, including high material costs, terminated or delayed projects and availability of financing,” said Kevin Martin, chief executive officer of Sonoma Risk Insurance Agency in Los Angeles. “Sometimes, owners with dwindling funds and doubts about the future of the economy may simply fail to pay as agreed, leaving real estate companies few options other than contract litigation.”
Zurich¹s CLI program is designed to help remove some of the risks faced by contractors and real estate developers involved in contract litigation. The risk of paying an adversary’s attorneys’ fees typically arises from a provision in a contract agreement between the two parties, Martin said, adding that this provision is typically part of purchase and sale agreements, construction agreements and development agreements.
Zurich in North America’s real estate practice offers an underwriting team across the U.S. along with insurance products for property & casualty to help real estate owners and managers reduce their risk of coverage gaps.
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