Sonoma Risk Expands Policy Coverage to Texas - Enabling More Businesses and Individuals to Better Manage Financial Risk in Litigation

AUSTIN, Texas and LOS ANGELES, Aug. 3 /PRNewswire/ -- Sonoma Risk Insurance Agency and Daniels-Head Insurance Agency today announced the distribution of Contract Litigation Insurance in Texas. This first-of-its-kind policy is underwritten by Zurich and helps protects plaintiffs and defendants from having to pay their adversary's attorneys' fees should they lose their case.

The risk of having to pay an adversary's attorneys' fees in a contract case is heightened in Texas because, not only are litigants exposed to prevailing party provisions in contracts, but they also face that risk due to the statutory right to recover attorneys' fees based on Texas Civil Practice and Remedies Code Section 38.001.

The risk to businesses and individuals is further complicated as 66% of defendants lose their contract disputes at trial according to the Bureau of Justice.

"Today, with the spread of 'Loser Pays' provisions and statutory schemes like the one in Texas, you need to think twice before moving ahead with even a good case -- as legal fees are often far greater than damages. Now, with our contract litigation insurance, companies and individuals can protect themselves from having to pay their adversary's legal fees and decide whether or not to pursue a case based on its merits," said Kevin Martin, founder and Chief Executive Officer of Sonoma Risk Insurance.

Contract Litigation Insurance will offer a variety of benefits to businesses and individuals including:

• Reducing financial risk exposure
• Enabling companies/individuals to pursue strong claims that otherwise may have been abandoned due to financial liability
• Allowing general counsels and business owners to budget litigation costs more effectively

"We are very excited to be the first in Texas to offer this breakthrough policy. It goes right to the heart of what our clients are looking for: a smart way to help protect against and reduce potential litigation costs," says Ken Redfern, CEO of Daniels-Head Insurance.

The distribution agreement provides Daniels-Head access to all of Sonoma Risk's legal insurance policies, including its flagship product, Plaintiff Contract Litigation Insurance™ (PCLI), as well as the recently launched Defendant Contract Litigation Insurance™ (DCLI).

To provide the maximum amount of flexibility to businesses and individuals, both the PCLI and the DCLI policy can be purchased within 60 days of the commencement of litigation.  

Zurich, one of the leading property and casualty insurance providers globally and in North America, is backing the policy.

"When we first launched this program with Sonoma Risk, we said attorneys who share information about the benefits of this new program with their clients are exhibiting their continued desire to uphold the ethical and professional responsibilities that come with practicing law," said Damiano Servidio, head of Professional Services for Zurich's Programs unit. "We are pleased that this message is resonating so quickly within the legal community and is helping us expand this new policy from where we first launched it, in California, now into Texas."

ABOUT SONOMA RISK INSURANCE AGENCY

Sonoma Risk is dedicated to providing innovative and affordable litigation insurance to individuals, businesses, and corporations. Its policies are underwritten by individual member companies of Zurich in North America, a leading global insurance carrier.

Based in Los Angeles, with regional offices planned for the Midwest, Southwest, Southeast, and Northeast, Sonoma Risk is comprised of a skilled management team of seasoned professionals within the legal and insurance industries.

For more information go to http://www.sonomarisk.com

ABOUT DANIELS-HEAD INSURANCE AGENCY

Founded in 1954, Daniels-Head Insurance Agency is a leader in marketing, selling, and administering insurance products throughout the United States. Daniels-Head has been administering lawyers' professional liability insurance programs since the late 1970s and serving the insurance needs of professionals.

For more information, go to http://www.danielshead.com.

ABOUT ZURICH

Zurich in North America is a part of Zurich Financial Services Group (Zurich), an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland and employs approximately 60,000 people serving customers in more than 180 countries, including more than 9,500 employees in North America.

Underwritten by individual members companies of Zurich in North America, this PCLI policy is offered only in certain jurisdictions and can be purchased only on a surplus lines basis from a licensed surplus lines producer. The description here is a summary only. It does not include all terms, conditions and exclusions of the policies and coverages described.

For more information about programs offered by Zurich, go to http://www.zurichna.com/programs.

© 2010 Sonoma Risk Insurance Agency.

SOURCE Sonoma Risk Insurance Agency