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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%