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Litigation Buy-Out Insurance

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Litigation Buy-Out (LBO) insurance typically covers a specific lawsuit or known claims that can adversely impact an organization during or after a transaction. The coverage enables 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 with a deal. LBO can help nullify escrows or indemnities that would otherwise slow most mergers and acquisitions. Uses for this coverage can apply to:

  • Contractual disputes
  • Securities Litigation
  • Employment Practices Liability
  • Professional Liability
  • Product Liability
  • Intellectual Property Liability
  • Successor Liability Concerns

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%