Each year millions of contract lawsuits are filed in the United States and a large portion include a prevailing-party provision that permits the winner to recover attorneys’ fees from the loser. Those fee awards can exceed damages and materially threaten a client’s cash flow or ability to continue operations. Demetriou Group’s Contract Litigation Insurance is designed specifically to address that exposure — a gap that many standard liability and litigation policies expressly exclude.
Overview — How Demetriou Group’s CLI Program Works
Demetriou Group offers CLI as a one-time premium policy written within the first 12 months of active litigation. There is no deductible; the premium is fully earned at bind. Because CLI is event driven, earlier placement in the lifecycle of a dispute generally leads to lower premium costs and broader underwriting flexibility. Coverage can be issued for either side of the dispute and is frequently available with substantial limits, subject to underwriting.
Ideal Accounts and Appetite
- Commercial contracts with a prevailing-party clause — suppliers, distributors, manufacturers, and service providers
- Technology and SaaS agreements where fee awards can be disproportionate to the contract value
- Construction subcontracts and professional services disputes that include fee recovery provisions
- Accounts where the claimant or defendant faces asymmetric litigation exposure (e.g., small business vs. deep-pocket counterparty)
Typical accounts that fit the program: businesses of small to mid size with contract disputes filed in state or federal court, commercial litigation arising from breach of contract, and cases where the insured is seeking an insured outcome without risking catastrophic fee awards. Accounts outside appetite usually include criminal matters, class actions, or disputes with significant known adverse rulings or fraud allegations; each submission is reviewed on its merits.
Coverage Highlights and Advantages
- Specific insurance against an opponent’s attorneys’ fees under prevailing-party clauses
- Available to plaintiffs and defendants
- High coverage limits available through multiple carrier partners
- One-time premium, no deductible — full premium earn-in at bind
- Event-driven placement: must be purchased within the first 12 months of a litigation
Underwriting Notes and Minimum Premium
Underwriters will assess the underlying contract, the existence of a prevailing-party provision, basic facts of the dispute, party financials, and prior litigation history. Early submission yields better options—Demetriou Group recommends submitting as soon as litigation is filed and before dispositive rulings. Minimum premium and specific terms vary by carrier and risk; please note the program lists minimum premium as "Varies."
Territories and Regulatory Positioning
Demetriou Group’s CLI program is available across all listed jurisdictions: AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, UT, VT, VA, WA, DC, WV, WI, WY. The program is offered through multiple carrier markets (Varies) and can be placed on admitted or non-admitted paper depending on state availability and the carrier chosen.
Why Place CLI with Demetriou Group?
- Specialized MGA expertise in niche litigation exposures and access to multiple markets
- Flexible placement for both plaintiffs and defendants with competitive limits
- Practical underwriting guidance that helps you position submissions early in the litigation lifecycle
- Streamlined quoting and placement from an experienced underwriting team that understands how CLI changes litigation strategy for insureds
Example Scenarios
- You represent a mid-sized software vendor sued by a customer for contract nonperformance. The contract includes a prevailing-party clause and the customer’s demand for fees could be material to your client’s recovery—CLI can be placed to protect against an adverse fee award.
- A small manufacturing firm is defending a breach of supply contract where the counterparty has deeper pockets. Purchasing CLI early helps your client defend the claim without risking ruinous fee exposure if they lose.
Submission Tips
Provide the complaint or demand letter, the contract with prevailing-party language, basic financials for insured and adversary (if available), and a short litigation timeline. Early placement increases carrier options and may reduce premium. Because carrier appetite and minimum premiums vary, contact your Demetriou Group underwriter with the submission for a tailored review.
Frequently Asked Questions
What types of accounts are a good fit for Demetriou Group’s CLI program?
Commercial contract disputes with a prevailing-party provision are the primary fit — examples include suppliers, service providers, technology vendors, and construction subcontracts. Small- to mid-sized businesses facing asymmetric fee exposure are ideal candidates.
When must the policy be purchased during litigation?
CLI is event driven and must be purchased within the first 12 months after the start of litigation. Earlier placement typically produces better carrier options and pricing.
Does CLI cover both plaintiffs and defendants?
Yes. Demetriou Group places CLI for both plaintiffs and defendants, subject to underwriting and carrier terms.
What states and regulatory status apply to this program?
The program is available in the states listed in the storefront (AL through WY and DC). Carrier placement may be admitted or non-admitted depending on state rules and the market selected.
Need help placing an account? Connect with a market specialist.