Restructuring & Recovery Insurance

In the current economic climate and as the market place becomes more global, competition is fierce and margins are squeezed. It is becoming increasingly vital for businesses to protect their commercial interests.

Consequently commercial disputes are becoming more frequent and businesses are forced into litigation. Large sums of money are spent on legal fees rather than invested in the growth of the business.

Our restructuring and recovery team is recognised as a leading provider of insurance and risk management solutions within the restructuring, turnaround, civil recoveries and insolvency sectors.

We do not simply provide immediate cover from the time of your appointment; we also analyse and review pre-appointment insurance and potential open market placements, and monitor the insolvency scheme cover throughout the life of the case. We provide clients with indicative costs to assist with budgetary requirements.

KEY SECTORS

WHAT WE DO

We work closely with insolvency practitioners, law of property act receivers, professional service firms, legal advisers and capital providers.

Our expert team is highly experienced holding insurance, legal and health & safety qualifications. Furthermore, we have access to expertise in other sectors within JLT Specialty including real estate, financial risks, aviation, marine and reinsurance.

Experience, innovation and partnerships are highly crucial to delivering specialist risk management solutions.

We provide some of the most innovative risk solutions for individuals and organisations working in the business recovery sector. By maintaining strong working relationships with major professional associations, member bodies and our clients, we ensure our services remain relevant to their needs.

FAQs

We do not simply provide immediate cover from the time of your appointment; we also analyse and review pre-appointment insurance and potential open market placements, and monitor the insolvency scheme cover throughout the life of the case. Clients are provided with indicative costs to assist with budgetary requirements. We meet clients’ objectives in areas including:

  • Insolvency
  • Property management
  • Liability
  • Motor
  • Cyber
  • Risk management
  • Health and safety
  • Proceeds of Crime Act
  • Claims management
  • Litigation risk management
  • Third party litigation funding
  • Insolvency bonds

Arbitration can be an effective method of resolving disputes. Indeed there is now usually an arbitration clause written in to most commercial disputes. Whilst arbitration is frequently seen as a cheaper alternative to litigation, the costs can still be prohibitive. Particularly for a small organisation taking on a much larger organisation in a contractual dispute.

In much the same way as third party litigation funding, arbitration can also benefit from funding. Funding can be secured in arbitration to pay but not limited to:

  • Own side legal fees
  • Disbursements such as expert fees
  • The costs of the arbitrator.

ATE insurance is a risk transfer mechanism that protects clients’ interests in the event of an unsuccessful case. Knowing the perils of unsuccessfully litigating the existence of ATE leaves one asking, “why carry the risk?”

ATE can provide a number of benefits to our clients, including but not limited to:

  • Protection from adverse costs orders
  • Clients can pursue a meritorious claim with greater confidence
  • Can be leveraged to encourage the opponent to settle.

In the event of an unsuccessful arbitration there is still potential exposure to:

  • Own side legal fees
  • Expert fees
  • The arbitrator's fees

Arbitration costs insurance can provide protection against these exposures as well as against any adverse costs award.

Interim injunctions can be an effective tool in a claimant’s armoury. Particularly in matters such as insolvency proceedings where there is a real concern that a respondent may dissipate funds or dispose of assets in order to frustrate any litigation. There will not always be time to fully evaluate the full circumstances; therefore, the risk of an adverse costs order can be very real.

In the eventuality that the injunction is lifted or found to have been wrongly granted, the claimant can face a costly bill. Consequently, the applying party will be asked to provide a cross undertaking in damages, and this will often need to be fortified.

However, there is an insurance product in the market that can protect the claimant from the exposure to any adverse costs resulting from an interim injunction. This is called cross undertaking in damages cover (CUDC).

WHY JLT

Restructuring and recovery risk insurance
  • We are able to develop answers to your problems that are bespoke to you. We have the flexibility and connections with the market to build unique products specifically with you at their heart
  • We will speak to you in a language you will understand and we will explain any complexities so that you know exactly what service you are getting and what you are covered for. We can explain the particulars of your cover in a clear and concise way for your peace of mind. We believe that our clients should know how to activate their policy should they need to and our ability to provide clarity is fundamental to that
Restructuring and recovery risk insurance
  • Our unrivalled relationships to the right insurers in the market, dealing with them every day, means that we can leverage not only the price but also the coverage
  • Our promise is to always provide wordings that are robust and evolving as your industry develops. We take into account new exposures which test the market. We ensure the most competitive package is available to you.
  • We do not outsource claims management. Our claims team are based in our London HQ, working side by side with our broking specialists and are available to advise our clients whenever needed. This means you always deal with people who understand you and your business which is useful at the best of times but essential in the event of a claim.
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