Litigation-cost-protection: What You Should Know?


As a personal injury lawyer, there must have been many instances where you had taken the case on contingency and lost the trial. The trial costs you huge expenses, but you can’t ask for even a penny from your client. You were the one who paid for all the losses.

At this point, you might have thought of not taking contingency cases in the future or wished to change the law to reimburse your extra expenses. But irrespective of all the losses, you still take risks on contingency cases and are always worried about the losses.

But now you don’t have to worry anymore. There is an insurance called Litigation cost protection, which will bear all expenses in the lost trial. Many companies offer litigation cost protection insurance, but choosing the right one as per your needs is crucial. You can’t choose the right insurance until you know all the details about the litigation cost protection and benefits.

Therefore, to help you, here is everything you should know about litigation cost protection.

What is Litigation Cost Protection?

Litigation cost protection is innovative insurance designed for plaintiff attorneys. It provides insurance coverage for the trial expenses incurred by plaintiff attorneys or plaintiffs in case of a loss trial. It covers costs spent on litigation, including expert witness, litigation presentation costs, travel expenses, filing fees, trial exhibits, deposition transcripts, etc. In short, with litigation cost protection, if you lose a trail, all money spent on the trail is paid to you, up to the policy limit selected by you.

How Much Does Litigation Cost Protection cost?

Usually, the Litigation Cost Protection policy costs 7 percent of the amount insured, with a $100000 coverage capping. For example, for a $100,000 policy, the one-time premium payment would be $7,000 plus possible processing fees. Policies can be easily purchased online in a few minutes, ranging from $3,500 to $100000.

What are the Benefits of Litigation Cost Protection?

1. Act AS An External Source of Funding

Litigation Cost Protection allows plaintiff attorneys to pursue valuable claims without worrying about financial losses if they cannot recover. With the support of LCP, lawyers can freely put all their resources together to claim compensation. Even if the lawyer loses at the trial, the insurance companies pay for all the trial expenses. Hence LCP acts as an external source of funding for the lawyers.

2. Levelling the Playing Field Against Opponents

Securing the finances enables the attorney to level the playing field against a better-resourced opponent. LCP ensures that a lawyer can hire a quality team of experts and bear various expenses to pursue a better case strategy. It also signals the other party who might be planning to prolong the litigation to drain the claimant’s funds that such tactics won’t succeed. If necessary, the claimant can pursue the case to adjudication. Therefore, litigation cost protection neutralizes opponents’ tactics by reducing or eliminating resource inequality.

3. Protection Against Financial Risk That Comes with All Litigation

When lawyers pursue contingency cases, they take on financial risk. This risk derives from the fact that even the most meritorious claim can fail, and the lawyer must pay for all the litigation expenses. Litigation Cost Protection shifts this financial risk to a third-party financier. This makes the plaintiff lawyer better able to bear the risk than a lawyer pursuing a claim without coverage of trial expenses.

Apart from the above, there might be more questions in your mind regarding Litigation Cost Protection. A few of them are discussed below:

1. Who Is Eligible to Buy Litigation Cost Protection?

Any attorneys or plaintiffs funding the trial expenses are eligible to purchase the Litigation Cost Protection. They can buy it on a case-by-case basis.

2. How often can an attorney buy Litigation Cost Protection?

An attorney or Plaintiff can buy a Litigation Cost protection policy every time they file a lawsuit.

3. For what type of cases can litigation cost protection be purchased?

Litigation Cost Protection policy can be purchased for all types of torts claims and contract actions.

Examples of tort claims for which Litigation Cost Protection is available are

  • Motor Vehicle Accidents
  • Premise Liability Cases
  • Intentional Torts
  • Medical Malpractice
  • Product Liability Cases

Examples of contractual cases for which Litigation Cost Protection is available are

  • Breaches of contract.
  • Mortgage foreclosure.
  • Promissory note claims.
  • Other claims for indebtedness.


Now you know what Litigation Cost Protection is and what its benefits are. Hence, protect yourself from financial losses by purchasing a Litigation Cost Protection policy for every lawsuit you file. With the policy, you have the freedom to focus on pursuing justice for clients instead of worrying about case costs. But before you pay for any coverage, remember to do your homework. Not all policies are created equal. Research and find out what type of services each plan covers. Then, decide if the particular policy is going to meet your needs or not.