The breadth of risks covered in the Mergers & Acquisitions risk marketplace sometimes seems limited only by the imagination. Here are just some of the merger-related services and insurance policies that HUB HKMB can arrange:
Coverage of Direct M&A Risks
Representations and Warranties replaces or reduces indemnification requirement under purchase-and-sale agreement.
Tax Opinion Liability addresses potential liability resulting from an adverse tax ruling.
Aborted-Bid Cost Insurance reimburses the company for external costs resulting from an aborted transaction.
Envirocap covers cost overruns from environmental remediation projects.
Portfolio Transfers assume a company’s entire portfolio of multiple liabilities (often Casualty or product liabilities).
Coverage of M&A Financial Risks
Litigation Liability Cap: This coverage caps liability associated with existing litigation.
Litigation Risk Arbitrage transfers the entire liability for the litigation to an insurance company for a one-time premium.
Litigation Retro Funding provides the insured company an alternate method to finance a settlement.