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Tax Liability Insurance

Helps provide financial protection against challenge by a tax authority of a tax position.

 

AIG can help provide financial protection against loss arising from the successful challenge by a tax authority of tax exposures identified during a purchase or sale or help structure risk transfer options for taxpayers managing their internal tax risk.

Coverage Highlights

Tax liability insurance can reimburse an insured for taxes, interest, insurable penalties, and the costs of contesting or defending one or more covered tax positions.

AIG can underwrite certain tax exposures in the U.S., Canada, Mexico, and other countries in Central and South America on a case-by-case basis.

AIG can provide policy limits of up to $50,000,000 and policy terms of 6 or 7 years.

An insured can also request that the policy include coverage to be “grossed-up” for the income taxes arising from insurance proceeds received under the policy.

See What AIG Brings to the Deal Table

AIG works with brokers and clients to help understand and structure tax liability insurance solutions for potential tax liabilities, including those arising from:


Tax-free reorganizations and spin-offs

Net operating losses

Tax credits (such as investment, production, historic, low income housing)

Status issues (S-corps, RICs, REITs, PTPs)

Debt versus equity issues

Deferred compensation

Issues related to real estate and international tax

Additional Resources

Let AIG Tax Liability Insurance Help With the Next Deal or Tax Concern

Learn how our global expertise in insurance, law, tax, and regulations
can help facilitate smoother domestic and cross-border transactions.