Our transaction liability insurance products are structured to protect against financial loss arising as a result of inaccuracies in representations or warranties made in share and asset purchase agreements. Available to both parties, our policies can minimise seller liability on business exit, enhance bids by potential buyers and bridge differing indemnification expectations. We offer a full suite of transaction liability insurance products, including Warranty and Indemnity insurance (R&W) and insurance for contingent tax and other liabilities arising in the context of mergers and acquisitions (M&A). Features include:
Each policy is tailored to a specific M&A transaction, ensuring that cover is flexible enough to address the specifics of the deal.
BREACH OF WARRANTIES
Our W&I policy provides cover for financial loss or liability arising from a breach of a representation or warranty in an M&A acquisition agreement.
Our policy can help minimise the impact of post transaction claims against the seller by the buyer, which can allow a seller to make a clean exit from their investment. BID
The question of indemnity caps is a significant issue in M&A transactions. With our insurance, which provides alternative recourse on a deal, a buyer can accept a lower indemnity cap from a seller, which makes their bid more attractive to the latter.
Different indemnification expectations on cross-border deals can lead to widely differing requirements for buyers and sellers. Having a R&W insurance policy provides security for either party.
LIMITED SELLER SECURITY
Companies located in overseas jurisdictions may not offer a buyer sufficient security for post-indemnification claims. Being 100% backed by Lloyd’s, our policy offers access to stable and high quality capital recourse.
Our cover can reduce or eliminate the need to establish escrows or purchase price holdbacks during a transaction. This can significantly speed up the process, allowing a seller to take hold of proceeds more promptly, which in turn can help with their post-deal estate planning.