Topic: Transactional Insurance and Insurance Issues in Transactions
Mergers, acquisitions, and other corporate transactions raise questions both of whether to purchase insurance for the transaction, and how insurance is handled in the transaction. In recent years there has been an upswing in the use of transactional insurance for aspects of the deals themselves, particularly representation and warranty insurance, but also tax indemnity, environmental, and other types of insurance designed to cover risks of the transaction. At the same time, a corporate transaction can have a significant effect on a company’s existing insurance program -- from the continuity of its current coverage, to whether and how the rights to its historic coverage for historic liabilities are transferred in the deal. Companies active in mergers and acquisitions face a number of additional insurance issues, such as coordination of the coverage for the personnel they place on the boards of their acquired companies. This presentation addresses these issues, from the standpoint of both buyers and sellers, to assist parties in managing the risks and ensuring they are allocated as intended. Available to all US chapters.