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Are Litigation Costs Insurable?

Judicial reform, which is still underway, though certain provisions of new codes of practice have already come into effect. They, for instance, stipulate that the prevailing party be fully reimbursed for incurred litigation expenses.

That is why our Client inquired whether it was possible to insure litigation costs alone.

It is worth mentioning that insuring plaintiff’s litigation costs does not comply with the requirements of accidental and probable nature of insured event, as stipulated by the Insurance Act of Ukraine. What is more, its provisions directly underline that the indemnity be denied should the insured event (damage) be caused by willful act of the Insured. 

On the other hand, insuring litigation costs of a defendant is theoretically possible, though it has not been implemented in the national insurance market as an independent insurance product yet.

As to our Client, we managed to ensure that their expenses including court fees, attorney fees and other litigation costs shall be indemnified under the professional indemnity policy concluded with the help of BritMark.