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What is Insolvency litigation?

Litigation insurance can be used for all types of insolvency disputes pursued under the Insolvency Act 1986 and Companies Act 2006. We are able to support claims where the insolvency practitioner is acting as the trustee in bankruptcy or liquidator of a company.
Insolvency dispute case types:

  • Claims which are void under section 127 Insolvency Act 1986
  • Misfeasance claims under section 212 of the Insolvency Act 1986
  • Fraudulent trading claims under section 213 of the Insolvency Act 1986
  • Wrongful trading claims under section 214 Insolvency Act 1986
  • Transactions at an undervalue under section 238 Insolvency Act 1986
  • Preference claims under section 239 Insolvency Act 1986
  • Transactions defrauding creditors under section 423 Insolvency Act 1986

The Temple Advantage

Our experience of insolvency litigation is considerable 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 best tools to promote access to justice.

• Litigation insurance for insolvency litigation is used by liquidators and trustees in bankruptcy alike
• 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 the court issue fee, expert reports and mediation.

Getting the timing right

The 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 of the case.
It is useful to see pre-action correspondence, the insolvency practitioner’s witness statement and exhibit, and information about the respondents’ ability to pay damages and costs.

Your questions answered

Who is recorded as the Insured on the policy?

The Insured will be recorded as the insolvency practitioner, acting as the trustee in bankruptcy or liquidator.

Who pays the premium?

The insolvency practitioner will be liable to pay the premium.

What happens if there is a global settlement?

We understand that global settlements are common place in insolvency litigation. If it is necessary to reduce the premium in order to bring about a settlement, Temple can consider doing so on a pari passu basis with your fees.

Will you pursue the insolvency practitioner or my firm for the balance of the premium?

Whilst that remains the strict contractual position, in practice Temple will work towards taking a commercial approach where necessary in order to facilitate a successful outcome.

What does the policy provide cover for?

The standard terms and conditions provide indemnity for the Insured’s own disbursements and the other side’s costs. Own disbursements which are indemnified under the terms of the policy, for example mediator’s fees or the cost of an expert report, will be eligible for disbursement funding.

Do I have to be acting on a CFA?

Whilst we do not ordinarily require a solicitor to act on a CFA for any area of work, it is usually the position that lawyers acting on insolvency disputes are instructed on a CFA basis. If you are not working on a CFA basis, we may ask why this is and how the fees are funded. This will not affect our view of the merits of the case.

Contact our experts

If you would like more information on our litigation insurance and disbursement funding products for insolvency litigation, or you have any other legal expenses insurance query, please email or call me on 01483 514411. We look forward to hearing from you.

Jacob White

Jacob White


Jacob White

Jacob insures and case-manages a wide range of commercial and Chancery litigation. This involves providing costs solutions to SMEs, large corporates, private individuals and insolvency practitioners.
As an underwriter, Jacob frequently corresponds with leading lawyers and brokers to discuss current cases. He also assists with the development of Temple’s ATE commercial business.
Jacob joined Temple in 2014 after reading History at university. He has since completed the GDL and recently been called to the Bar of England and Wales.