Transactional insurance

Private equity firms and strategic buyers and sellers alike can benefit greatly with coverage for merger and acquisition deal facilitation.

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Manage your risk

Transactional insurance, otherwise known as transaction liability insurance, is an important risk-management tool that transfers risk of losses from a seller to a third party, reducing a buyer’s exposure to any breaches of warranties provided. It’s also a very valuable tool for merge and acquisition deal facilitation. 

Common transactional risks during mergers and acquisitions include: 

  • Seller warranty breaches, which can affect a buyer’s valuation of a business
  • Post-deal liabilities, such as sellers preventing the repatriation of proceeds from the sale
  • Cross-border deals, which can create significant buyer uncertainty if they are unsure of the foreign jurisdiction they would potentially invest into
  • Conflict between buyer and seller, who are a part of the business post transaction in the event of a claim or loss
  • Known risks, such as tax liabilities, which can potentially throw a spanner in the works when it comes to deal negotiations. 

Tailored insurance solutions

Our transactional insurance solutions are designed to support merger and acquisition transactions. Our solutions include Warranty & Indemnity Insurance, Tax Liability Insurance, Environmental Insurance, Litigation Insurance, Contingent Liability Insurance and Public Offering of Securities/IPO Insurance.

We can help you with a policy that will:

  • De-risks transactions by transferring deal risk to the insurance markets
  • Enables a clean exit and expedited returns to investments
  • Eliminates tax risks posed by the structuring
  • Bridges diverges in risk assessment between buyer and seller
  • Protect against unknown risks such as legal or financial liabilities 

The benefits of transactional insurance

When undertaking such important, high-stakes processes as mergers and acquisitions, transactional insurance is a must, not least for the obvious risk-management benefit. 

  • Increased confidence for both parties involved in a transaction, which can make the process a little smoother and more positive.
  • More efficient negotiations – transactional insurance eliminates uncertainty, so both parties can focus on getting the best outcome for all. 
  • Tailored coverage – transactional scenarios and the businesses they involve are so varied, so it doesn’t make sense to have a single transactional insurance policy for all. At Risk Advisory Hub our team will work to understand each company involved, as well as their individual risks, to determine coverage that puts you both in favourable positions.
  • Ongoing support – we always have your best interests at heart and we are always open to support you as your business journey changes and needs evolve.  

Get in touch

Please get in touch to discuss your business and commercial insurance requirements or for a free, no obligation quote.