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Competition law disputes insurance

The requirement for competition law disputes insurance is on the increase. Competition claims are inevitably complex, often highly technical and can require high levels of indemnity.

  • Our litigation insurance provides that protection and gives the client and those representing them the security and space within which to focus on the best possible outcome.
  • No sensible litigant will embark on a competition claim without Litigation Insurance. Hedging the risk of a loss or the costs consequences of not beating an offer to settle is essential.
  • It helps to have counsel’s opinion in these cases but it is not essential early in the life of a claim. Expert’s reports, in particular when dealing with quantum, are important to enable us to understand the case and its potential value.
  • Of greatest importance is the solicitor’s summary of the case and his or her assessment of the merits.

Competition case types

  • Claims for damages as a result of a cartel fixing prices
  • Claims for damages as a result of an abuse of a dominant position

The Temple Advantage

Our experience of competition law cases is growing and our reputation for excellent service is second-to-none. The products we offer reflect our commitment to listening to our clients and providing the most effective insurance to enable clients to get the best outcomes.

  • Litigation insurance for competition disputes is available to claimants and defendants alike
  • Damages claims can be insured
  • No upfront cost of obtaining litigation insurance – and also we do not charge an assessment fee
  • Payment of the premium is deferred until the conclusion of the case and is contingent on a successful outcome.
  • Insured clients will have access to disbursement funding from Temple Funding, a subsidiary of Temple Legal Protection. This can be used to fund, without risk to our client, the court issue fee, expert reports and mediation.

Getting the timing right

The litigation insurance policy is purchased after a legal dispute arises.
The best time to send a case to us is as soon as you are reasonably able to assess the merits of the claim. Usually, this is after your investigation and the pre-action correspondence has been completed, and before proceedings are issued. However, cases can be referred to us at any stage. We often see a Counsel’s opinion, a case summary prepared by the solicitor and a quantum report at the outset of the case.

Your questions answered

How does Litigation Insurance for competition law disputes work?

Traditional legal expenses insurance is often known as Before-The-Event or ‘BTE’ cover. Litigation insurance for competition law disputes used by solicitors is commonly known as After-The-Event or ATE insurance. The latter is the technically correct term but your clients may better understand ‘litigation insurance’. Whichever terminology you prefer, it is a bespoke policy put in place with the specific objective of protecting your client from having to pay the opponent’s costs and their own disbursements if they lose their competition claim.

Is the client liable to pay Insurance Premium Tax (IPT) if they or the relevant company is not based in the UK?

IPT is paid by clients based in the UK at a rate set by the UK government. IPT is also paid by clients based elsewhere in the EU and the European Economic Area (“EEA”). Different rates are set by each member state. No IPT is payable by clients based outside the EU or the EEA. When you ask us to consider insuring a case, do let us know if the client seeking insurance is based outside the UK.

Do you want Counsel’s opinion and quantum reports?

We would encourage you to propose cases to us at the outset without a Counsel’s opinion, since it is not a pre-requisite. Ideally, we would like a case summary from you – to include the background facts of the case, the strengths and weaknesses of the case, how any weaknesses might be overcome, and your overall view of the merits.

Does litigation insurance just cover the other side’s costs?

Whilst the main function is to pay the other sides legal bill on behalf of the client in the event that their legal action has failed it can also cover other costs of the dispute.

For example, litigation insurance can also pay one’s own disbursements that have been incurred as a result of having to pursue the claim such as Court fees and expert fees etc. This means that more than just the risk of paying the other sides fees can be off set. Clients can also offset some of the risk in terms of their own capital.

Litigation insurance can also respond prior to the conclusion of the legal action. For example, our ATE policy also covers adverse costs orders in respect of interim applications.

How much does litigation insurance cost?

The cost of litigation insurance will generally depend on how much cover is sought, the value of the claim and the amount of the client’s own costs. However, we typically offer staged premiums, meaning that the cost of the premium is linked to the stage of proceedings when the matter settles. Therefore, if a matter settles at trial, it will be more expensive than if it had settled once a defence had been filed.

The premium is typically capped to a maximum amount. Therefore, clients will only ever pay a proportionate amount for their litigation insurance policy with us.

Contact our experts

If you would like more information on our litigation insurance and disbursement funding products for competition law disputes, or you have any other legal expenses insurance query, please email or call me on 01483 514428. We look forward to hearing from you.

Matthew Pascall

Legal Director – Head of Commercial

Matthew Pascall

Matthew was called to the Bar in 1984 and joined Guildford Chambers two years later. Spending more than 30 years in practice there, he was listed as a Legal 500 Tier One barrister.

He joined the commercial team at Temple Legal Protection as Senior Underwriting Manager in 2017.

Matthew was appointed to Temple’s Board in December 2022 as Legal Director and Head of Commercial.

His knowledge of the commercial legal sector and litigation practice is invaluable to the business and our clients, providing specialist experience to lead the commercial litigation insurance team.