As judgment preservation insurance gains steam, appellate decision leaves insurers 'on the hook' for millions

A federal appeals court's April 30 reversal of a $1.6 billion judgment for a software maker 'has sent ripples through the growing judgment preservation insurance industry,' according to a Bloomberg Law story.

Stephen Kyriacou Jr., managing director at the Aon Litigation Risk Group, highlighted the concept: 'most people would be willing to pay a $1-2 million premium for a JPI policy that guaranteed an $8-9 million recovery net of the premium, even if the judgment was wiped out on appeal.'

Law360 reports that judgment preservation insurance 'has gained steam in the past five years,' but insurers are becoming more cautious by adjusting prices, percentage of judgment insured, and underwriting criteria.

Read at ABA Journal