Risk Management For The Financial Risk of Litigation

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Attorneys’ Fees Risk Insurance

Sonoma Risk Insurance Agency has created a suite of litigation insurance solutions to protect plaintiffs and defendants from the risk of having to pay their adversary’s attorneys’ fees in litigation. Coverage for this risk is generally excluded from most traditional insurance programs, leaving litigants exposed to a large and potentially catastrophic risk if they lose their case.

Annual Attorneys’ Fees Edge (AAFE)

Much like other common types of insurance, AAFE policies are sold annually and provide coverage for unknown litigation that may arise during the policy period. AAFE premiums are charged for the amount of insurance coverage provided and claims are paid out to the insured when a loss materializes.  Coverage limits begin at $10,000 on up to $100,000.  We can tailor a program to fit your specific needs.  Please fill out the AAFE application and return it toinfo@sonomarisk.com.

Already in litigation?

If your clients are already in litigation, we also have a solution for them.  The key to the best chance for obtaining coverage at the lowest possible price is to apply as early as possible after filing suit, or receiving service of a suit.

Sonoma Risk has three solutions depending on your situation.  Please fill out the AFRI Intake Form and we can determine which of these programs will best fit your needs. Please return this intake form to info@sonomarisk.com

  • Contract Litigation Insurance (CLI)

For the risk of paying an opponent’s attorneys’ fees arising from a loser pays provision in a contract

  • Statutory Attorneys’ Fees Edge (SAFE)

For the risk of paying an opponent’s attorneys’ fees arising out of many federal or state statutes.

  • Court Awarded Annual Attorneys’ Fees Edge (CAFE)

For the risk of paying an opponent’s attorneys’ fees where there are multiple exposures of paying an adversary’s attorneys’ fees or where the exposure of loser pays is a possibility, not yet clearly identified.

Please fill out the AFRI Intake Form and we can determine which of these programs will best fit your needs.

Insurance coverage against paying an adversary’s attorneys’ fees for individuals, businesses both public and private.
As a general matter, certain types of lawsuits require that the prevailing party in the litigation is entitled to recover their attorneys’ fees from the losing party. Coverage for this risk is generally excluded from most traditional insurance policies. The AFRI suite of products provides different litigation insurance solutions that will protect against this risk both on an annual basis (before litigation has commenced) or after the event when a lawsuit has already commenced. The AFRI suite of products is the first-of-its-kind insurance program that is specifically created to help protect both plaintiffs and defendants from this risk of having to pay an opponent’s attorneys’ fees. The AFRI suite of products are underwritten by  leading global insurance carriers rated “A+” by A.M. Best.

How The Policy Works.
The AFRI suite of products works much like other common types of insurance policies, such as home, auto or health. Premiums are charged for the amount of insurance coverage, and claims are paid out to the insured when a loss materializes. However, unlike other forms of insurance, there is no complicated claims adjustment process associated with our AFRI program. In addition, depending on your need at the time, and  your risk tolerance, these policies, while  purchased at different times, still provide protection against this risk exposure (up to policy limits) until the covered lawsuits are terminated.

Fair-Minded Premiums.
At Sonoma Risk, it’s our policy to provide litigants with fair-minded premiums. The key to the best chance for obtaining coverage and obtaining it at the lowest possible price is to either purchase an annual policy or apply as early as possible after the filing of a suit or receiving service of a suit.

Risk Tolerance

Coverage can be purchased on an annual basis before litigation has commenced (at a much reduced rate) or, after at a higher rate.

Outstanding Service. Expedient Claims.
The AFRI suite of products was developed by an experienced team of attorneys and insurance professionals with a deep understanding of the complexities of lawsuits and the importance of personalized service. Our Litigation Insurance Specialists guide and support policyholders throughout the entire life cycle of the policy – from  issuance, to processing a claim in the most professional and expedient fashion.

With one of the AFRI solutions in hand, plaintiffs and defendants can feel more secure about the uncertainties associated with litigation, including financial risk and budget concerns. After all, you can be right in litigation and still lose.

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