Transactional Risk Insurance
Worldwide Facilities’ innovative risk transfer insurance products offer protection during mergers and acquisitions, reducing or eliminating many of the usual associated risks.
- For-Profit Entities - All Industry Groups
- Financial Institutions
TRANSACTIONAL RISK PRODUCTS AVAILABLE
REPRESENTATIONS & WARRANTIES INSURANCE
In M&A transactions, the Buyer typically requires the Seller to escrow a percentage of the purchase price to cover any breach of the representations and warranties the Seller makes to the Buyer during an M&A transaction. Insurance can either reduce or replace the escrow, or provide additional protection above the amount escrowed.
TAX GUARANTEE INSURANCE
Insurance guarantees a particular tax position taken by a company.
Insured sells a claim and/or pending litigation to the insurance carrier outright. Litigation is removed from the balance sheet and the insurance carrier assumes all liability on a going-forward basis.
CREDITS/ACCOUNTS RECEIVABLE INSURANCE
Insurance can protect a company's Accounts Receivable against non-payment by their customers and unexpected uncollectible debts. Policies can be arranged on a domestic only, export only or worldwide cover basis.
LIABILITY/LITIGATION/CLAIM COST CAP
A policy is purchased that caps existing litigation, or an open-ended liability at a pre-determined amount - often excess over a designated loss pic.