What is Litigation Funding?

• Most litigation funders use a traditional funding model by providing non-recourse capital to a law firm or claimholder in exchange for a share of recovery.
• The funder’s return is normally calculated by charging a specified interest rate, applying a multiple of invested capital, a percentage of the proceeds, or a combination of the three.
• For case portfolios, especially diversified portfolios, litigation funding can be combined with insurance to even further reduce the financial burden of legal proceedings and litigation funding, which brings us to our next point.

What is Litigation Insurance?

• Instead of going to the funding market first, companies or law firms can look to insurance to remove the outcome risk.
• Just like with a litigation funder, the risk goes through an underwriting
  process, but this time, by insurance underwriters who specialize in creating litigation insurance solutions for known, threatened, or pending litigation. 
• In exchange for a fixed premium, the company or law firm can obtain downside protection through insurance to prevent a total loss of expenses or attorney’s fees incurred in the prosecution of the litigation. 

What are the Key Benefits of Leveraging Litigation Funding Coupled with Insurance?

• By leveraging litigation insurance in combination with funding law firms or claimholders can secure financing at the most-efficient cost of capital because the insurance turns the financial from non-recourse to recourse because the insurance is now the financing collateral, not the litigation.  
• By removing the risk of loss, the cost of litigation funding capital reflects the new paradigm and therefore becomes less expensive and more efficient, allowing law firms and plaintiffs to achieve better results than if they use litigation funding alone.  
• The bottom line is that when you combine litigation funding with insurance for case portfolios you can efficiently transfer litigation risk, at a much lower cost of capital, because you have downside risk protection, which increases upside potential.  

What Sets Certum Group Apart From Other Litigation Funders and Insurers?

• At Certum Group, we created the largest litigation risk transfer platform on the market which is the first and only one that combines litigation funding, litigation insurance solutions on both sides of The V, along with monetization latent litigation assets and premium finance.  
• The solutions are available as stand-along products, or in combination with each other, such as litigation funding + insurance in order to meet the clients legal, business, and financial objectives.  
• Our overarching goal is to bring certainty to the uncertain world of litigation through our suite of litigation risk transfer solutions.