Products
Representations & Warranties Insurance
Protects a party from losses incurred as a result of the inaccuracy or breach of Reps and Warranties made in the connection with a transaction.
Highlights:
- Structure: Buy-Side or Sell-Side Policies
- Coverage: Amount typically tied to an escrow amount or can provide additional layers of protection. Amounts in excess of $100MM are available.
- Cost: Approximately 2-5% of the limit of liability selected.
- Policy Period: Typically tracks with the survival period in transaction agreement.
- Process: As quickly as 5-7 business days.
Contingent Liability Insurance
Can serve to eliminate or reduce a "contingent" liability that may arise during a merger, acquisition, or other business transactions.
Highlights:
- Structure: Very flexible; can offer Primary protection or sit Excess to backstop existing obligations.
- Applicability: Coverage for a wide variety of issues such as Specific Indemnity Obligations; Successor Liability Issues; Contractual Issues; Governmental Approval Contingency; Fraudulent Conveyance.
- Cost: Pricing and retention are structured on a case-by-case basis, but can range anywhere from 4-10%
Tax Liability Insurance
Provides protection for losses incurred as a result of a taxing authority challenging or disallowing a tax position.
Highlights:
- Structure: Can be very flexible and tailored to individual situations
- Applicability: Federal, State, Local, or Foreign tax exposure
- Cost: Pricing and retention are structured on a case-by-case basis, but can range anywhere from 4-10%
- Policy Period: Length of policy usually matches the statute of limitations
- Coverage: Will pay for taxes, interest, fines and penalties, defense costs, and gross-up of taxes payable in the event of loss.
Litigation Buy-Out Insurance
Typically written to cover a specific lawsuit or known claims that can adversely impact an organization. The coverage allows a company to either transfer existing third-party liability exposure to an insurer, or it can act as a hedge against future exposures allowing parties to move forward.
Highlights:
- Uses: Can cover Contractual Disputes; Securities Litigation; Employment Practices Liability; Professional Liability; Product Liability; Intellectual Property Liability; Successor Liability Concerns
- Cost: Pricing and retention are structured on a case-by-case basis, but can range anywhere from 4-10%