June 5, 2024

Understanding Your Options: Awareness of Litigation Risk Transfer Tools Among In-House Professionals

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William Marra

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June 5, 2024

Memorial Day has come and gone, and June is now upon us, unofficially marking the start of summer. As many of us gear up to tackle our long-neglected yards in preparation for the hot weather ahead, we’re not just grabbing the lawnmower and garden hose. We’re also reaching for the power trimmer, the grill cleaner, and the potting soil. To do the job right, we need the full toolkit.

Similarly, in-house legal professionals increasingly require access to the full suite of litigation risk transfer solutions to effectively manage their responsibilities. Certum recently conducted a survey among in-house legal professionals, and the results shed light on a notable trend: while awareness of litigation finance is high among these professionals, understanding and awareness of litigation insurance remain low. 

This gap presents significant opportunities for in-house professionals to enhance their risk management strategies by embracing the complete range of available litigation risk transfer tools. And this presents a chance for outside counsel to play a pivotal role in educating their clients about the diverse range of solutions available in the market today. 

If you want to learn more, you can download a copy of our survey results here

High Awareness and Utilization of Litigation Finance

Litigation finance, the practice of third-party funding for litigation in exchange for a portion of the recovery, has gained substantial traction over the past decade. Our survey indicated that a significant majority of in-house legal professionals are not only aware of litigation finance but are also increasingly comfortable leveraging it to manage litigation expenses and risks.

The benefits of litigation finance are clear: it allows companies to pursue meritorious claims without bearing the upfront costs, aligns the interests of the funder and the client, and can transform legal claims into valuable assets. This financial tool is particularly valuable for companies facing large, complex, and potentially protracted litigation, where the costs could otherwise strain resources.

Low Awareness of Litigation Insurance, High Demand

In stark contrast, our survey revealed that awareness of litigation insurance is markedly low. Litigation insurance, which encompasses a range of products designed to mitigate the financial risks associated with litigation, remains underutilized and often misunderstood. Products such as Adverse Judgment Insurance (AJI) and Judgment Preservation Insurance (JPI) can provide a financial safety net, ensuring that companies are protected against unfavorable outcomes and can secure the benefits of favorable judgments.

Here are the survey results, which show at least one in three in-house professionals have never even heard of the major insurance tools:

How Litigation Insurance Can Meet Key Goals

Our survey also highlighted three primary goals that in-house legal professionals aim to achieve by using litigation risk transfer solutions:

  1. Cost Certainty and Transferring Outcome Risk. Nearly half (49%) of respondents indicated that their primary goal with litigation risk transfer solutions is to achieve cost certainty and transfer the outcome risk of litigation. Litigation insurance products can help: they can lock in potential costs and protect against the financial uncertainty of adverse judgments.
  2. Cost Savings : 42% of respondents cited cost savings as a key goal. Litigation insurance can help legal departments save money in many ways, including by locking in and monetizing gains from affirmative litigation, and by hedging against the risk of loss and transferring defense cost risk through defense-side insurance.
  3. Avoiding P&L and Balance Sheet Impairment : 40% of respondents are concerned with avoiding profit and loss (P&L) and/or balance sheet impairment. Litigation insurance can protect the company’s financial statements from significant impacts due to unexpected litigation outcomes, thereby maintaining financial stability and investor confidence.

Bridging the Awareness Gap

The disparity in awareness between litigation finance and litigation insurance presents an opportunity for in-house lawyers and outside counsel. In-house lawyers can give their company a competitive edge by staying abreast of the latest litigation risk transfer solutions. Outside counsel have a unique opportunity to add value to their clients by socializing them to these risk transfer tools – something most counsel aren’t doing right now.

Three tips:

First, litigation risk management strategies should be understood as business risk management strategies. Companies spend enormous amounts of time and energy managing risk to their core business – and litigation risk can threaten that core the same way broader micro- and macro-economic trends can do so. 

Second, in-house and outside counsel should launch educational initiatives – think workshops and seminars – to educate lawyers about the different types of litigation insurance products available, their benefits, and how they can be strategically used.

Third, if your company isn’t aware of these litigation risk transfer tools, become an internal champion for them. Companies need individuals who understand and advocate for the use of litigation risk transfer within the legal department, fostering a culture that values comprehensive risk management. This can provide a particularly compelling opportunity for more junior lawyers looking for a “step up” opportunity in their career.

Certum Group Can Help

Get in touch to start discussing options.

Recent Content

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By Certum Team January 12, 2026
Litigation finance has become an essential tool for modern litigation strategy — but with its growth has come a wave of discovery requests seeking information about funding arrangements. These requests are improper, burdensome, and legally unsupported. To help lawyers and litigants push back with confidence, Certum has released a new Model Brief Opposing Discovery of Litigation Funding—a comprehensive, practitioner-oriented document designed to equip litigators with the strongest arguments, cases, and frameworks available. This publication is now available for free download . The Model Brief is part of Certum’s growing library of thought leadership and practical guidance on litigation finance and insurance. That library includes Certum’s Guide to Litigation Funding and its annual survey of in-house counsel . Across federal and state courts, parties continue to seek discovery into litigation funding sources and materials, often as a tactic rather than a legitimate inquiry into claims or defenses. These efforts raise serious issues: Privilege and work-product concerns Chilling effects on access to justice Attempts to shift focus away from the merits Increased litigation costs and delays Yet for many lawyers, responding to these requests requires reinventing the wheel. Certum’s model brief solves that problem. It provides a structured, persuasive, and research-backed response that can be adapted swiftly to any case. Click here to download the brief.
By Certum Team January 6, 2026
Bloomberg recently interviewed Certum Group’s William Marra as part of its coverage of efforts by commercial liability insurers to require the disclosure of third-party litigation funding agreements. Marra explained to Bloomberg that “[t]he disclosure of litigation funding risks putting impecunious litigants at a systematic disadvantage in our legal system,” adding mandatory disclosure “can disclose to defendants very valuable information, including who has funding, and critically, who does not have funding.” Marra further responded to the argument that litigation funders might fuel frivolous litigation. “To the contrary, the evidence shows that funders serve as a very effective screen, only backing the most meritorious cases, and if anything, likely resulting in fewer weak cases getting filed,” Marra said. This statements builds on arguments Marra previously advantaged in a Vanderbilt Law Review article about litigation funding.  The Bloomberg article is available here .
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By Certum Team December 17, 2025
Certum’s William Marra has been elected to the Board of Directors of the International Legal Finance Association, the litigation finance industry’s leading advocacy group. Will joins five other new members of ILFA’s Board, including: Marcel Wegmüller, the co-founder and CEO of Nivalion; David Perla, the Vice Chair of Burford Capital; Erik Bomans, the CEO of Deminor Recovery Services; Kacey Wolmer, the CEO of Contingency Capital; Rob Rothkopf, the founder and Managing Partner of Balance Legal Capital. “We are honored to welcome Marcel, David, Erik, Kacey, Rob, and William to ILFA’s Board of Directors,” said Paul Kong, the Executive Director of ILFA. “Each brings exceptional expertise, deep industry insight, and a demonstrated commitment to the responsible growth of legal finance. Their leadership will strengthen ILFA’s work to promote transparency, expand access to justice, and support the continued global development of our industry.” “I am delighted to join ILFA’s Board and assist with its important public policy work,” Will Marra said. “Litigation finance helps level the playing field and ensures cases are resolved based on their merits, not the size of a party’s checkbook. LFA’s advocacy for claimholders who need litigation finance is more important now than ever before.” The International Legal Finance Association (ILFA) represents the global commercial legal finance community, and its mission is to engage, educate and influence legislative, regulatory and judicial landscapes as the voice of the commercial legal finance industry. It is the only global association of commercial legal finance companies and is an independent, non-profit trade association promoting the highest standards of operation and service for the commercial legal finance sector. ILFA has local chapter representation around the world.