Loss insurance for lawsuits, often referred to as “litigation insurance” or “legal expense insurance,” provides financial protection to individuals and businesses facing the costs associated with legal disputes. It can cover expenses such as attorney fees, court costs, expert witness fees, and other litigation-related expenses.
Litigation insurance is crucial because lawsuits can be financially draining, even if the insured party ultimately prevails. Legal expenses can accumulate quickly, and without insurance, individuals and businesses may be forced to pay these costs out of pocket. Litigation insurance provides peace of mind and financial security, allowing policyholders to focus on their case without the added burden of financial worries. Historically, litigation insurance has been used by corporations and high-net-worth individuals, but it is becoming increasingly accessible to small businesses and individuals as well.
