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[Customer Name]
[Business Name]
[Address]
[City, State Zip]
In Re:
Reduce you financial exposure in contract litigation
Dear [Customer Name]:
Ask any lawyer. A level of fear and uncertainty always exists regarding the outcome of litigation. In fact, the
Bureau of Justice Statistics has found that 33 percent of plaintiffs and 66 percent of defendants lose their
contract disputes at trial. No matter which side you are on or how strong a case you may have, it is never
clear who the judge or jury will determine is the “winner.”
This uncertainty is heightened in contract disputes where a “loser pays” provision requires the losing party to
repay the winning party’s attorneys’ fees. This “loser pays” risk is wide- spread in contract litigation.
Research shows that more than 50 percent of all contracts contain “loser pays” provisions. Many states
even have made ”loser pays” the law regardless of whether a “loser pays” provision exists in a contract.
Importantly, courts are required to enforce loser pays provisions, and the fee awards can be greater than the
actual damages in a case.
Standard insurance policies specifically exclude coverage for the risk of paying an opponent’s attorneys’ fees
in lawsuits involving contract disputes. But what if you could purchase additional insurance that would
protect against this financial risk? No longer would you, as the plaintiff or defendant, be pressed to settle a
lawsuit because of a lingering threat of losing and the requirement of paying costly attorney fees to the
winning party. Such game-changing coverage would give you the certainty needed to proceed with a lawsuit
without the fear of dire financial consequences resulting from loser pays exposure.
Introducing Contract Litigation Insurance. Underwritten by a global, A+ rated carrier, Contract Litigation
Insurance protects plaintiffs and defendants from the risk of having to pay their adversary’s (or opponent’s)
attorneys’ fees in contract disputes. What makes Contract Litigation Insurance unique is that businesses or
individuals are not required to purchase the coverage until a lawsuit is filed or served. In other words, you can
purchase insurance coverage when it’s actually needed - - after litigation begins and you are exposed to the
threat of paying your opponent’s attorneys’ fees.
Since Contract Litigation Insurance removes a significant financial threat in litigation, the protection it offers
allows you to make better decisions in a lawsuit. A Contract Litigation Insurance policy can increase
negotiating power, reduce your opponent’s leverage, and improve a potential settlement.
[Insert Agency Name] wants to ensure you and your business are properly protected. Enclosed is an
informational piece regarding Contract Litigation Insurance. If you are currently or become involved in a
lawsuit over a breach of contract, contact us immediately. You can save on the cost of coverage by
purchasing a policy as early as possible in litigation and have certainty in what are often uncertain times.
Sincerely,
[Insert Signature]