Most plaintiff firms know to ask how much a litigation cost insurance policy costs.
Fewer ask when that premium is actually due.
It may seem like a small detail, but for a contingency fee practice, premium timing can have a meaningful impact on cash flow.
Plaintiff firms are already investing significant capital into every case they take. Expert witnesses, medical records, depositions, trial exhibits, accident reconstruction, focus groups—the list goes on. Those costs are often advanced months or even years before a case reaches resolution.
Adding another upfront expense on top of those investments deserves a closer look.
The Business Model of a Plaintiff Firm Is Different
Contingency fee firms don't generate revenue the way most businesses do.
They invest today with the expectation of being paid later.
That means cash flow isn't just important—it's what allows firms to continue taking on new clients, hire talented attorneys, retain the best experts, and pursue cases through trial when necessary.
Every dollar committed before a case resolves is a dollar that can't be invested somewhere else.
That's why understanding when an insurance premium is due is just as important as understanding how much it costs.
The Real Cost of Paying Upfront
When an insurance premium is due at the beginning of a case, firms are committing additional capital before they know the outcome.
For some firms, that may not be a concern.
But for firms managing dozens—or even hundreds—of active contingency matters, every dollar matters.
The premium itself may not be the largest expense on a case. But every dollar committed before a case resolves is a dollar that can't be used to fund another expert, hire another attorney, invest in technology, or take on the next great case.
That's the opportunity cost firms should consider when evaluating any insurance product.
Why Redan Bills Premiums After the Case Concludes
When we built Redan, we spent a lot of time thinking about how plaintiff firms actually operate.
Contingency fee firms are already advancing significant capital every day. Requiring another upfront payment for insurance didn't feel aligned with that business model.
That's why every Redan policy is structured so that premium payment is due only after the case concludes, regardless of the outcome.
Firms receive protection throughout the life of the case without having to make another upfront investment while the litigation is still pending.
Instead of tying up additional capital, firms can continue investing in their active docket while knowing they're protected if a covered case doesn't result in a recovery.
We believe that's a structure that better aligns with the economics of a contingency fee practice.
Insurance Should Fit the Way Plaintiff Firms Operate
Litigation cost insurance isn't just about what happens if a case is unsuccessful.
It's also about how the policy fits into the day-to-day operation of a contingency fee practice.
A policy that requires an upfront premium asks firms to commit additional capital before a case has generated any revenue.
A policy with premium payment due after the case concludes allows firms to preserve working capital throughout the life of the litigation while still protecting the investment they've already made.
That difference becomes even more meaningful for firms handling complex, high-cost litigation where capital is constantly being deployed across multiple active cases.
Questions Every Firm Should Ask
If you're evaluating litigation cost insurance, don't stop at coverage limits or premium percentages.
Ask questions like:
- When is the premium due?
- How does premium timing affect my firm's cash flow?
- Does this structure align with the way my firm invests in contingency cases?
- Will this allow us to preserve capital for future opportunities?
Those answers can be just as important as the policy itself.
Final Thoughts
Plaintiff firms make calculated investments every single day.
Insurance should support those investments...not require another one before the case is even over.
That's why we believe premium timing deserves just as much attention as coverage limits, reimbursement percentages, or policy terms.
Because when you're evaluating litigation cost insurance, how and when you pay can be just as important as what you're paying for.