Class Action Settlement Insurance

Class Action Settlement Insurance (CASI) is the only product on the market that allows companies to mitigate, cap and transfer the financial risk of settlement in existing class action litigation. Designed by Certum Group in response to businesses’ need for financial certainty in class action lawsuits and resulting settlements, CASI eliminates the unintended consequences of settlement and helps businesses exit litigation for a known, fixed cost.

Underwritten on the paper of a leading national carrier which holds financial strength ratings of A++ from AM Best™ and AA+ from Standard & Poor’s™, CASI is a revolutionary tool for businesses when they need it most— after the litigation has been filed.

Stage of Litigation

Certum Group can be retained at any stage of active class litigation, without any upfront cost or obligation, as consulting-only experts in order to review case-specific data to better understand the potential exposure and financial risk. This analysis, along with our proprietary database of historical class action settlements, allows us to quantitatively and qualitatively analyze the risk of various settlement outcomes and provide risk transfer solutions at an attractive cost. While companies can leverage Certum Group’s expertise at any stage commencing from the time a lawsuit is filed, the policy is only issued once a settlement agreement has been reached.

How It Works

• CASI is purchased to transfer the settlement risk in existing class action litigation
• Coverage is available for the full spectrum of consumer class cases including: fraud, mislabeling, products liability, statutory claims and other types of litigation
• A policy covers all valid claims made by class members under the settlement agreement
• There is no deductible or self-insured requirement, just a one-time premium which transfers 100% of the aggregate settlement liability

Key Benefits

• Resolves expensive litigation efficiently for a known, fixed cost
• Provides certainty to help with budgets, forecasts and expenditures
• Minimizes P&L and balance sheet impact
• Removes concerns over uncertain payout
• Mitigates internal frictional and opportunity costs
• Negates the unintended consequences of settlement including:
  
  
  • Weakened financial statements
  • Missed or reduced earnings
  • Adverse impacts on raising capital
  • Acceleration of debt
  • Negative impacts on cash flow