Only civil litigation is eligible for legal funding. When a plaintiff sues a defendant in civil court, the case is either settled out of court or is decided by a jury. Either way, the settlement or verdict is a monetary award. When the defendant loses, their insurance company pays the plaintiff money to settle the case and some of that money is used to repay the lawsuit funding company. In criminal court, the state files charges, and when the defendant loses, they face penalties such as jail time or fines, which they must pay out of pocket. No insurance companies are involved.