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.
€500m - €1bn
| Policy type | Buy-Side W&I |
| Sector | Renewable Energy |
| Sellers jurisdiction | UK |
| Target jurisdiction | Ireland |
| Buyers location | Japan |
| Buyer type | Corporate |
Warranty & Indemnity reports
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.
£500m - £1bn
| Policy type | Specific Tax liability |
| Sector | Construction |
| Sellers jurisdiction | UK |
| Target jurisdiction | UK |
| Buyers location | 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.
€50m - €250m
| Policy type | Specific Secondary Pensions Liability |
| Sector | Manufacturing / Industrials |
| Sellers jurisdiction | UK |
| Target jurisdiction | UK |
| Buyers location | 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.
€500m - €1bn
| Policy type | Cat Loss Litigation |
| Sector | Manufacturing / Industrials |
| Sellers jurisdiction | UK |
| Target jurisdiction | UK |
| Buyers location | 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.
€1bn+
| Policy type | EIL Policy (Historic and future pollution) |
| Sector | Manufacturing / Industrials |
| Sellers jurisdiction | Germany |
| Target jurisdiction | Worldwide sites |
| Buyers location | 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.
