Sonoma Risk Insurance Agency recently announced the distribution of contract litigation insurance in Illinois. The policy is underwritten by Zurich in North America, and is intended to help protect plaintiffs and defendants from having to pay their adversary’s attorneys’ fees should they lose their contract case. Arthur J. Gallagher Risk Management Services, Inc. is the preferred distributor in the state of Illinois, Sonoma Risk says.
The risk to businesses and individuals is further complicated as 66% of defendants lose their contract disputes at trial, according to research from the Bureau of Justice.
“With the growing instances of 'Loser Pays’' provisions, you need to be extra cautious when moving forward with even strong cases—as legal fees often are more than the damages,” said Kevin Martin, founder and CEO of Sonoma Risk Insurance. "Now, companies and individuals can decide whether or not to pursue a case based on its merits and avoid paying their adversary’s legal fees."
Sonoma Risk says contract litigation insurance will offer a variety of benefits to businesses and individuals, including:
• Mitigate litigation exposure
• Allow general counsels and business people to budget more effectively for litigation expenses
• Enable companies/individuals to pursue or defend strong claims that otherwise may have been abandoned due to financial liability
Additionally, the distribution agreement provides Arthur J. Gallagher Risk Management Services Inc. access to all of Sonoma Risk’s legal insurance policies, including its flagship product, Plaintiff Contract Litigation Insurance (PCLI), as well as the recently launched Defendant Contract Litigation Insurance (DCLI). Both the PCLI and the DCLI policies can be purchased shortly after commencement of litigation.
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