The AIG Building

Litigation Buyout Insurance

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.