Sonoma Risk Insurance, which was launched in April 2010, has issued around $8m in policy coverage for its contract litigation insurance in first 19 weeks of operations.
In recent past, the American legal landscape has undergone a dramatic shift as dozens of states across the country, including Alaska, California, Oregon, Texas and others have adopted statutes that require the losing party to pay the prevailing party’s attorney’s fees in litigation.
Sonoma Risk Insurance founder and CEO Kevin Martin said that with the changes in the economy and legal landscape, one cannot risk paying other sides’ legal fees, so that is the reason for the demand of the company’s policy as individuals, businesses and lawyers seek out new tools to help reduce financial risk.