Partner, Global Professional & Financial Risks
Warranty and indemnity insurance benefits both sellers and buyers in corporate transactions. A policy indemnifies a party for financial losses that could arise out of a breach of warranty or indemnity in the purchase agreement. Sellers use it to limit their ongoing liabilities and prevent sale proceeds being held up in escrows, allowing them to exit deals cleanly. Buyers use it to make their bids more attractive to sellers and to protect the value of their investment once deals are done.
We work for buyers and sellers in corporate transactions, as well as for the firms that advise them. Our job is to make sure the parties in a transaction get the insurance coverage they need, first to make their deal happen, then to protect their interests in the future.
We can put together back-to-back cover for warranty liabilities given in the purchase agreement transferring the risks to the insurer. The insurer will either cover the buyer (a buyer-side policy) or agree to indemnify the seller (a seller-side policy). Our team also structure insurance solutions to cover known risks identified in due diligence including tax, legal and pension contingencies.
We’ll use our experience, influence and relationships with insurers to get you the best possible coverage. We’ll also:
When negotiations between a property fund and an insolvent company collapsed because of a large potential tax liability, we found a way to resurrect the deal.
We discovered the company’s bank might be prepared to contribute towards the buyer’s liability. We told our client that if the bank’s contribution reached a certain limit, the rest of the liability would be insurable. Three insurers had rejected our client before we became involved – now the same three competed for their business.