| Legal Costs Insurance Cover The Managers of OPDU are pleased to report that they have developed a new legal costs insurance product which should be of considerable benefit to trustees of occupational pension schemes who embark upon litigation against third parties. If trustees are advised that they should sue a third party (e.g. their fund manager for negligent investment decisions) they may apply to Thomas Miller Litigation Management Limited (TOMLIM)* for after-the-event legal costs insurance against the risk of paying the other party's costs of the litigation. If trustees are ordered to pay the other party's costs, the insurers (Lloyd's Underwriters) will meet that liability. If the trustees are successful in the litigation and the other party is ordered, or agrees, to pay, the trustees' costs, the trustees can recover the insurance premium from the other party. This insurance represents a "win-win" option for trustees. At the outset of litigation they can limit the downside risks of losing in the knowledge that success should lead to reimbursement of the insurance premium by the losing party. The insurance is available to non-members of OPDU and members of OPDU who do not have the Litigation Costs Extension. The cover is available on a case by case basis and the premium payable is assessed according to the risks inherent in each case. TOMLIM employs in-house barristers experienced in handling commercial insurance claims to carry out the risk assessments and assist in seeking to ensure a successful outcome for trustees in the litigation. There is a £1,500 application fee to cover the cost of producing the risk assessment and the fee is set off against the premium in the event that trustees decide to purchase the cover. The insurance is designed for large commercial litigation and there is a minimum limit of cover of £100,000. It is possible to tailor the insurance to meet specific requirements of trustees. For further information, please contact Redvers Cunningham (020 7204 2531) or email: redvers.cunningham@thomasmiller.com, or Jonathan Bull or Marcia Adele. * Thomas Miller Litigation Management Limited is a sister company of OPDU. |
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