Insurance can be used as a cost effective way of offsetting risks that arise in the ordinary course of business or that are identified during a transaction or financing.
HWF are able to structure insurance backed solutions to ring-fence potential issues providing certainty if such an issue crystallises.
The key function of contingent risk insurance is to remove the financial uncertainty of an adverse determination or crystallisation of the relevant liability. For a risk to be insurable the following criteria are necessary:
Known matters relating to:
Balance sheet liabilities/capital release:
If a business has provided for contingent liabilities, insurance can ring-fence such liabilities removing them from the balance sheet.