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Practice Details

Transactional Risk Insurance Coverage

Equity firms and parties engaged in mergers and acquisitions are increasingly relying on transactional risk insurance to mitigate risk and safeguard against unforeseen liabilities. Our Transactional Risk Insurance attorneys offer comprehensive guidance and support to insurers and underwriters issuing transactional risk insurance policies. We provide strategic counsel for product development, drafting policy documents, claims management, as well as conducting due diligence. We also serve as monitoring counsel for the industry’s most complex matters.
We specialize in:

Representations and Warranties Insurance
We assist insurers in managing claims whether the policy was issued to the buyer or seller, assisting the insurer in evaluating alleged breaches and collaborating with accountants to evaluate the claimed loss. In addition to handling claims as coverage counsel, we assist insurers in drafting policies for buyer-side and seller-side policies.

Judgment Protection Insurance
This coverage is used to protect an award in a judgment obtained by litigation from the financial fallout of adverse appellate reviews. The value of this coverage is that it allows the prevailing party access to the judgment funds during what can often be a multi-year appellate process, ensuring businesses do not have to repay the judgment amount in the event of a reversal. Our team helps insurers monitor and understand the complex appeals process, including PTAB review of patents, and provides regular updates to brokers ensuring carriers have a complete understanding of the case and a knowledgeable litigation evaluation of any reversals or remands.

Tax Liability Insurance
This insurance shields parties from tax liabilities resulting from adverse results of reporting positions taken in uncertain tax situations, often taken as part of corporate transaction or assumed based on the reporting of a predecessor entity in an aquation situation, this coverage provides peace of mind by protecting against the financial consequences of adverse tax assessments or challenges. Our team assists insurers in understanding the positions taken and the outcomes of Service and court reviews while working with brokers and the insured parties to protect the carrier’s interest.

Collateral Protection Insurance
This insurance provides coverage to lenders, if there is a default or acceleration event under a lending facility, where the amount recoverable from disposition of the collateral protecting the lenders interest is insufficient to discharge the debt. Our team can help insurers understand the value of the collateral, work with the brokers and insured parties to review work-out options (often needing insurer consents) and assist carriers in understanding on the developments during the waiting period typically outlined in the policy terms.