Judgment Preservation Insurance
Lock in a Particular Judgment Amount
With any significant trial court judgment, there is always a risk that the appellate court will reverse (in whole or in part) or reduce a damages award. Judgment Preservation Insurance (JPI) allows a plaintiff who prevailed at the trial court level to insure all or part of a damage award while an appeal is pending. Put simply, JPI is a targeted way to ring-fence appellate risk while allowing companies with a favorable judgment to immediately leverage the financial benefits of the award. JPI can be used in the context of summary judgment awards, trial verdicts, and arbitration wins. With JPI, a plaintiff with a trial court win can obtain immediate protection of a judgment threatened with reversal or damage reductions on appeal.
Stage of Litigation
Judgment Preservation Insurance is purchased post-judgment.
How It Works
Any company with a favorable judgment can consider transferring the appellate risk through the purchase of JPI. Using the following easy steps, Certum Group can assist a company with assessing its options:
- Determine if the company’s judgment is appropriate for JPI. Most insurable cases are those with solid appellate legal issues and large judgments.
- Once the company has identified a case it thinks may benefit from JPI protection, the insurer will conduct an underwrite of the risk, which generally requires diligencing the record and assessing the legal and factual issues.
- Once the initial assessment is complete, the insurer will usually engage in a Q&A with the company to help resolve any open items.
- If the risk is insurable, the insurer will propose policy terms and pricing.
- A one-time premium transfers up to 100% of the judgment risk to the insurer.
- Provides certainty: regardless of what happens on appeal or in subsequent proceedings, the plaintiff will recover an agreed-upon amount of the judgment or award.
- Alleviates litigation fatigue by providing a plaintiff the security it needs to continue the fight.
- It can augment additional monetization options, as JPI is often used in conjunction with litigation funding, which can provide access to liquidity and better financing terms.
- Facilitates settlement as JPI can provide the leverage needed to mitigate any notion that a cash-strapped plaintiff will settle on the cheap.
To arrange a confidential consultation, discuss your specific needs, or learn more about how we can meet your financial and business objectives, please email us, call us at (214) 570-3661 or click the Contact Us button on this page. We look forward to helping you solve any financial and legal uncertainty arising from existing or threatened litigation.
Certum Group Can Help
Get in touch to start discussing options.