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Transactional Insurance Products
Litigation buyout/special situation Insurance
What is it?
In respect of existing or pending litigation matters, we can structure a transfer of litigation or a catastrophe cover to cap litigation over and above the anticipated loss. This can be achieved on a full risk transfer or co-insurance basis. Typical scenarios include product liability disputes, breach or potential breaches of legislation or regulations, employment issues, contractual disputes, intellectual property disputes and disputes around the operational or trading history of an organisation.
The effect of this insurance is to provide security for the buyer by 'ring-fencing' the liability and the removal of a potential deal-breaking obstacle. These types of policies are most commonly used to 'de-risk' a business by removing or reducing contingent liabilities associated with a business, which may otherwise be deemed to be an unlimited liability. This insurance solution can also negate the requirement for the use of escrows or indemnities, providing certainty and finality to both parties in the transaction.
Why do you need it?
Litigation Buyout Insurance enables companies to manage the negative financial impact of a wide range of events, including litigation involving large uninsured and underinsured liabilities and complex operational issues. Such events may impede successful closure of merger and acquisition transactions, hinder value creation, or stand in the way of needed financing. Litigation Buyout Insurance can be vital to companies encountering the uncertainties associated with material litigation.
Who needs it?
Litigation Buyout Insurance helps companies to achieve the best possible resolution of litigation or potential litigation involving large uninsured and underinsured liabilities and complex operational issues.
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