Overview: Caps, or removes contingent liabilities and legacy management issues from a company's balance sheet, and transfers any recourse for the liability to insurance capital.
Who's it for?: Companies considering a merger or acquisition.
Litigation Buyout Insurance enables a client to ring-fence liabilities which may arise from any current or anticipated litigation, arbitration or other dispute. This is particularly useful in the context of a sale of a business where the unresolved dispute would otherwise prevent the sale proceeding or would have a significant impact on the price to be paid. Insurance takes this uncertain liability out of the negotiations, allowing the parties to concentrate on the business itself
As underwriting and cover are customised in each case, the policy can be tailored to a dispute, irrespective of its subject matter. Consequently the insurance may cover all proceedings from a simple breach of supply contract, a more complicated employment issue through to highly complex securities litigation and intellectual property disputes.
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