PRODUCT HIGHLIGHTS

Primary underwriting focus is on appeals in the United Kingdom, European Union, Asias, Dubai and Hong Kong

Appeals pending in other jurisdictions are also considered

Available limits of up to:

  • $50,000,000
  • £50,000,000
  • €50,000,000

Available for a broad range of appeals including appeals involving:

  • intellectual property matters
  • contractual disputes
  • unfair trade practices
  • government agency disputes
  • product liability
  • errors and omissions litigation

Coverage is not available for appeals:

  • relating to class action litigation
  • toxic tort, environmental or bodily injury litigation

Coverage is available for various types of Loss including:

  • compensatory damages
  • pre and post judgment interest
  • enhanced or exemplary damages (plaintiff’s policy)
  • prosecution costs or attorney’s fees award

Available for purchase by either plaintiff or defendant in connection with:

  • financings & investments
  • licensing agreements
  • liquidations
  • mergers & acquisitions
  • restructurings & workouts

Heybridge Contingency Insurance can be purchased:

  • before a transaction closes
  • at the time a transaction closes
  • after the transaction has closed

Lender Protection, Investor Protection and Third Party Protection Endorsements are available.

iNFORMATION

Heybridge & Partners Contingency Insurance (HPCI) product can be used to protect an insured against the financial impact of a verdict, judgment, arbitration award or agency determination favorable to the insured in arbitration, litigation or other proceeding being reversed on appeal.

We offer two types of HPCI policies:

  • Our “offensive” HPCI policy is designed to respond to situations where the insured is the plaintiff in the litigation or other proceeding and seeks protection against the damages or other amounts awarded to them being reduced or reversed on appeal of a verdict, judgment, arbitration award or agency
  • Our “defensive” HPCI policy is designed to respond to situations where the insured is the defendant in the litigation or other proceeding and seeks protection against the reversal of a decision in its favor (i.e. a finding of no liability) on appeal of the verdict, judgment, arbitration award or agency

Recognizing that the requirements and concerns of each potential insured vary, the scope and definition of “Loss” can be flexibly tailored and extended to address specific concerns. Some examples of this include:

  • Serving to remove a “deal blocker to completion of a merger, acquisition, restructuring, liquidation, licensing agreement, or other business transaction where concerns over the impact of an appeal either prevent consummation of the transaction or cause an unacceptable discount in the transaction consideration; providing an insured with immediate liquidity in situations where a lender is willing to use the proceeds of the policy as security in the event of an adverse outcome on appeal;
  • Removal of a balance sheet provision in situations where an insured’s independent accountants are satisfied that AppealGap® Contingency Insurance adequately eliminates or reduces the need for a financial balance sheet provision or Recognizing that the requirements and concerns of each potential insured vary the scope and definition of “Loss’ can be flexibly tailored and extended to address specific concerns;
  • Judicial or Administrative Delay Coverage which extends the policy to respond to the financial impact of a judicial or administrative delay in an insured appeal beyond the time period reasonably expected;
  • Lender Protection Coverage which extends the policy to respond to the financial impact to one or more lenders to an insured in the event that the borrower does not prevail on the insured appeal;
  • Investor Protection Extension which extends coverage to respond to the impact on the value or recoverability of an investment in an entity that is involved in litigation if the investee company does not prevail in the insured appeal; and
  • Third Party Protection Extension which provides coverage to respond to the concerns of an entity that is not a party to the appeal in question, but nonetheless may suffer negative financial consequences as a result of new case law or legal precedent set by the negative outcome of such appeal.

Of course, a combination of one or more of the coverage extensions discussed above is possible.

Frequently Asked Questions

Is Heybridge’s HCIP policy available for appeals in all types of litigation or proceedings,
Heybridge’s HCIP policy is available in connection with virtually any commercial dispute or
litigation with the exception of insurance coverage, personal injury, environmental, toxic-tort, any
class action litigation or securities litigation involving public companies. In addition, we have limited
appetite for the underwriting of appeals of arbitration decisions.

Can Heybridge’s HCIP Contingency Insurance be used to insure the party that has lost the initial
appeal?
While this is not the focus of Heybridge’s HCIP Contingency Insurance, in select cases this
type of appeal risk can be considered. We suggest that you call us to discuss the matter in further
detail before asking your client to prepare a complete submission.

What type of underwriting submission does Heybridge need in order to consider an HCIP
Contingency Insurance risk?
For appeals of United Kingdom court decisions, Heybridge typically requires a case caption and
can obtain the balance of the documents for the purposes of a preliminary review of your
HCIP Contingency Insurance risk through public sources To perform a preliminary review of
your HCIP Contingency Insurance risk which involves any other type of appeal, we ask that
you provide:
• the docket for the matter,
• copies of key pleadings and motions (with briefs) or claim/dispute documents (with briefs); and
• copies of any decisions, orders, awards, etc. issued in the underlying litigation or proceeding,
• including the decision which has been or may be, appealed.

Can Heybridge´s HCIP Contingency Insurance be considered for litigation or a proceeding for
which a verdict, judgment, arbitration award or agency determination has not yet been issued?
Although every piece of litigation and dispute is considered on its own merits, Heybridge can
underwrite an HCIP Contingency Insurance risk for litigation or a proceeding in which the
prospective insured has not received a decision, provided, however, that the matter is factually
developed enough for Heybridge to assess the legal merits of the risk and the potential damages
associated with the same. Although factually intensive disputes which have not been through
discovery or a first decision either at the arbitration or agency level are more challenging to
underwrite, depending upon the developments of the case, Heybridge can still perform a preliminary
review with the goal of providing you with an indication of whether the risk fits our appetite.

Will Heybridge underwrite HCIP Contingency Insurance risks where the underlying verdict,
judgment, arbitration proceeding for which a verdict, judgment, arbitration awarded an agency
determination has been issued outside of the United Kingdom?
Heybridge’s primary focus is on HCIP Contingency Insurance risks that involve disputes in
the United Kingdom, European Union, Asias, Dubai and Hong Kong. In some jurisdictions,
there may be practical considerations that preclude the offering of an HCIP policy. If the
appeal is taking place in another jurisdiction, please contact us.

How long does it take Heybridge to perform a preliminary review of an HCIP Contingency Insurance submission?
Provided the documents set out above are available and provided to us, typically Heybridge can give you preliminary feedback within three business days. In addition, a brief conference call with your client and/or its legal adviser(s) may be necessary in order for Heybridge to complete a preliminary review of a matter in litigation or arbitration.

Certain provisions of Heybridge´s HCIP policy are not applicable to my client’s circumstances. Can the template policy be amended to remove or amend these provisions?
Each Heybridge HCIP policy is tailored to respond to an insured’s specific circumstances As such, this will depend on which provision you wish to have removed or amended.

Potential Uses of the product include:

Financing & Investments
Licensing Agreements
Liquidations
Mergers & Acquisitions
Restructurings & Workouts