Overview
AppealGap® offers coverage for losses resulting from a favorable verdict, judgment, arbitration award, or agency determination being reversed on appeal.
Ambridge offers two types of AppealGap® policies:
- Our “offensive” AppealGap® 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.
- Our “defensive” AppealGap® 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 (e.g., a finding of no liability) on appeal.
Cover provided
Ambridge AppealGap® policies can benefit parties by:
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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
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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
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removing a balance sheet position in situations where an insured’s independent accountants are satisfied that AppealGap® Contingency Liability Insurance adequately eliminates or reduces the need for a financial balance sheet provision or reserve.
AppealGap® policies are custom-tailored to respond to an insured’s specific circumstances, and may cover losses such as compensatory damages, pre- and post-judgment interest, enhanced or exemplary damages (plaintiff’s policy), and prosecution costs or attorney’s fees award. In select cases, AppealGap® may even be used to insure a party that has lost an initial appeal.
AppealGap® policies can be utilized by virtually any individual or entity that is party to a litigation or other proceeding on appeal. In addition, coverage can be extended to respond to the concerns of an entity that is not a party to the appeal in question, but nevertheless may suffer negative financial consequences as a result, such as investors, lenders, and other third parties interested in the resultant case law or legal precedent.
AppealGap® policies can be applied in a wide variety of business agreements including financings and investments, licensing agreements, liquidations, mergers and acquisitions, and restructuring and workouts. AppealGap® can be purchased before a transaction closes, at the time of the transaction, or after closing. Policies are available for a broad range of appeals such as:
- Intellectual property matters
- Contractual disputes
- Unfair trade practices
- Product liability
- Government agency disputes
- Errors and omissions litigation
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FAQs and Case Studies
