Our Solutions

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.

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.

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.

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.

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.