Insurance Brokers

Certum Group works closely with insurance brokers and their clients to provide a broad set of litigation risk transfer solutions. Litigation risk transfer can be provided for companies (a) that have been sued and are looking to transfer the litigation risk to a third party carrier and (b) that are looking to limit the downside risk and/or monetize affirmative litigation assets.

Class Action Settlement Insurance (CASI)

Class Action Settlement Insurance (CASI)—the only product on the market that allows companies to transfer the financial risk of existing class action litigation. Designed by Certum Group in response to businesses’ need for financial certainty in class action lawsuits and resulting settlements, CASI mitigates the unintended consequences of settlement and uncertain payout.

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.

What does the policy provide?

CASI is unlike traditional insurance products in that each policy is tailored to the specific class action settlement circumstances and financial needs of the business.

Highlights include:

• CASI is purchased to cover pending or existing class actions
• Coverage available for the full spectrum of consumer class actions—from fraud, mislabeling, and product liability to statutory damage claims such as the Telephone Consumer Protection Act
• Policy covers all valid claims made by class members under the settlement agreement
• Coverage may be extended to include third-party costs such as class counsel fees, as well as notice and administration fees
• Limits of up to $50 million—and higher limits may be available upon request
• No deductible or self-insured requirement

Litigation Buyout Insurance (LBO)

Litigation Buyout (LBO) Insurance provides companies with the ability to successfully ring-fence litigation exposure and transfer the full financial risk of known, threatened or existing class action, antitrust and non-class litigation. With LBO Insurance, the insurance carrier takes on the financial risks and liabilities for businesses — at any time before settlement and for a known, fixed cost. In the context of an M&A transaction or financing, LBO Insurance negates the requirement for the use of escrows or indemnities, providing certainty and finality to both parties to the transaction.

What does the policy provide?

Each policy is customized to meet a company’s specific business, financial and legal objectives. For those cases where settlement is not an immediate option or business reasons make time of the essence, LBO Insurance provides a clear path. In exchange for the insurance premium, the insurance carrier will:

• Take over the defense of the litigation
• Take financial responsibility for defense costs
• Cover any adverse judgment

Highlights include:

• Provides risk transfer for known, threatened or pending litigation in exchange for a fixed premium
• Covers the financial risk of litigation, defense costs and adverse judgment
• Facilitates M&A and financing transactions by ring-fencing known litigation
• Limits of up to $50 million—and higher limits may be available upon request
• No deductible or self-insured requirement

Judgment Preservation Insurance (JPI)

Judgment Preservation Insurance (JPI) – provides a backstop to any judgment you have received which may be subject to appeal. The solution enables companies to lock in a particular judgment amount, regardless as to what the court ultimately decides.

What does the policy provide?

JPI provides a sum certain financial payout in the event a judgment is reversed or reduced, thus creating financial certainty for the policy holder.

Highlights include:

• JPI provides financial certainty if a judgment is reversed or reduced
• JPI can be used for a broad spectrum of litigation
• May be used in conjunction with financial solutions to monetize a judgment prior to finality
• Limits of up to $50 million – and higher limits may be available upon request
• No deductible or self-insured requirement

In addition, we are able to create bespoke policies that cover a multitude of litigation risks including adverse judgment insurance, after the event insurance and other tailored litigation risks.