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Our Solutions

At HWF we believe in a solution-led approach to meet clients’ needs. Please click on the below for information on some of the solutions that we provide.

Our range of M&A insurance products
Warranty & Indemnity Insurance

Insured party:
Buyer or seller.

Policy period:
Typically 2 years for general warranties and 7 years for tax and title exposures.

Coverage:
Protects the insured against financial losses resulting from unknown and unforeseen issues which trigger breaches of the warranties or claims under the tax indemnity given in a SPA.

Renewable 1

€500m - €1bn

Policy type Buy-Side W&I
Sector Renewable Energy
Seller jurisdiction UK
Target jurisdiction Ireland
Buyer jurisdiction Japan
Buyer type Corporate
Tax Liability

Insured party:
Buyer, seller, target or other entity if non-M&A related.

Policy period:
Typically follows the statute of limitations up to a maximum of 10 years.

Coverage:
Protects the insured against an adverse ruling by a tax authority. Cover is provided for a broad spectrum of tax issues which often arise as a result of the tax treatment of an M&A transaction, ordinary course operations of the business or previous restructurings, divestments or reorganisations.

Infrastructure 1

£500m - £1bn

Policy type Specific Tax liability
Sector Construction
Seller jurisdiction UK
Target jurisdiction UK
Buyer jurisdiction France
Buyer type Corporate
Contingent liabilities

Insured party:
Buyer, seller, target or other entity if non-M&A related.

Policy period:
Typically up to a maximum of 10 years.

Coverage:
Insurance to offset the risks associated with specific known and unknown liabilities/indemnities. A broad spectrum of risks can be insured such as contractual indemnities, IP or environmental issues and secondary pension liabilities.

Manu 2

€50m - €250m

Policy type Specific Secondary Pensions Liability
Sector Manufacturing / Industrials
Seller jurisdiction UK
Target jurisdiction UK
Buyer jurisdiction France
Buyer type Corporate
Contingent liabilities reports
Litigation Buy-Out or Appeal

Insured party:
Buyer, seller, target or other entity if non-M&A related.

Policy period:
Typically up to a maximum of 10 years.

Coverage:
Provides coverage for threatened or existing litigation either ‘ring fencing’ an issue or providing cover in excess of the likely outcome. In certain circumstances insurance may be available for matters that are being appealed having already received a favourable decision.

Manu 1

€500m - €1bn

Policy type Cat Loss Litigation
Sector Manufacturing / Industrials
Seller jurisdiction UK
Target jurisdiction UK
Buyer jurisdiction UK
Buyer type Private Equity
Environmental

Insured party:
Buyer, seller, target or other entity if non-M&A related.

Policy period:
Can be annually renewable or for a fixed period from 1 to 10 years depending on the nature of the risks.

Coverage:
Insurance can be used to offset the risks associated with specific known and unknown liabilities. These may be historic, ongoing or future liabilities. The policy can either back an indemnity or insure the underlying issue directly.

For insurance to be a viable option environmental due diligence should have been undertaken to allow the insurers to assess the level of exposure and for HWF to advise on the most appropriate solution.

Manu 3

€1bn+

Policy type EIL Policy (Historic and future pollution)
Sector Manufacturing / Industrials
Seller jurisdiction Germany
Target jurisdiction Worldwide sites
Buyer jurisdiction UK
Buyer type Private Equity
Our process timeline

There are a number of stages involved in the securing of insurance terms and the placement of an insurance policy. The key aspects of each stage are below.

This diagram is based upon a typical W&I insurance solution for an M&A transaction and it should be noted that this will always be tailored to the specific requirements of each transaction.

 

We use HWF wherever the opportunity arises because they advise, structure and execute W&I insurance policies with great efficiency. Our trust in their service and process allows us to focus on our job resulting in positive client outcomes on their M&A deals

Helen Croke, Ropes & Gray

HWF’s ability to drive the process forward de-risks the M&A processes we are involved with. We count on their reliability and expertise, even where there are complex issues or challenging timetables

James Renahan, Travers Smith

I am always happy to recommend HWF on deals; their in-depth experience of both M&A and the insurance market, combined with a pragmatic approach, leads to smoother processes, better coverage positions and ultimately happier clients

Aaron Fairhurst, CMS