What Are Litigation Funding Bonds?
Litigation funding bonds, also called litigation financier bonds, give investors a way to financially support legal cases. In litigation funding, a third party invests by contributing to the legal expenses of a defendant and, in return, receives a portion of any settlement or court-awarded payment if the case is successful.
These bonds are often required as part of the state licensing process for third-party litigation funders. They ensure that litigation financiers meet the terms of the funding agreement and act legally and ethically.
How Much Do Litigation Funding Provider Bonds Cost?
Litigation investors need to file a $50,000 surety bond to operate in most states. Most qualified individuals who apply on SuretyBonds.com can expect to pay a premium of just 1–2%, or $500–$1,000, for their bond policy.
To find an exact price for your litigation funding provider bond, select your location below and request a free quote.
How Do Litigation Funding Bonds Work?
A litigation funding bond binds three parties in a legal contract:
- Principal: The litigation funding provider or investor who purchases the bond
- Surety: The provider that issues the bond to the principal
- Obligee: The government or regulatory authority that requires the bond from the principal
The bond contract ensures that the principal acts according to legal and ethical standards. If they fail to fulfill their obligations, the surety will compensate harmed parties up to the bond's value.
How to Get a Litigation Funding Provider Bond
SuretyBonds.com provides the fastest and easiest way to get a litigation funding bond:
- Apply online at SuretyBonds.com
- Get a free quote within one business day
- Purchase your bond online
- File the bond with the obligee
Once you apply, a surety expert will reach out to discuss your application and provide a free quote. You can purchase your litigation funding bond online or over the phone. If you’re in a rush to receive your physical bond document, we offer next-day and overnight shipping options.
How Do I Renew My Litigation Funding Bond?
Litigation financier bonds expire annually. A SuretyBonds.com representative will contact you with renewal instructions and an invoice to keep your bond active before your term ends.
How Do I Update My Litigation Funding Bond Form?
If you need to update any information on your bond form, call 1 (800) 308-4358 or email [email protected], and one of our friendly representatives will be happy to assist you.