[PRINT ON AGENCY LETTERHEAD]
[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 youmay 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 greaterthan 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’ feesin 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 youropponent’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 businessare 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]