Transactional Products

Insurance that Closes the Deal

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Representations & Warranties Liability

The allocation of risks and liabilities between the parties in a merger or acquisition is one of the most fundamental and difficult aspects of any transaction. Traditionally, the accuracy of a seller’s representations and warranties have been backstopped by an escrow, which is often highly inefficient and can unnecessarily tie up money and resources for years. The insurance industry has developed an alternative solution: Representations and Warranties Liability Insurance (R&W Insurance). R&W Insurance protects the insured against unintentional and unknown breaches of a seller’s representations and warranties in a purchase agreement. It can also free up cash that previously languished in escrow.

Specific Contingency Insurance

Specific Contingency Insurance (SCI) is designed to provide coverage for known and specific issues that arise between the buyer and the seller in a merger or acquisition.

Litigation Buyout

Sometimes when the selling company in a transaction is involved in an ongoing litigation issue, a financial resolution of the issue between the buyer and seller is simply not enough. The buyer wants not only to be made whole in the event of an adverse ruling, but also wants a third party to take over the entire litigation process. This is where Litigation Buyout insurance can help. When an organization is covered by Litigation Buyout insurance, the insurance company steps in and takes over the defense, along with any financial impact associated with it.

Environmental Insurance

Environmental issues can threaten the feasibility of a merger or acquisition, or make them less attractive to a buyer. Often, the costs associated with remediating an environmental issue are difficult or even impossible to predict. Certain insurance companies provide policies that help in these situations.

Several insurance solutions exist to help address both known and unknown issues, including:

Remediation Cost Cap insurance
These policies insure known conditions, and cost overruns of a specific remedial plan.

Environmental or Pollution Liability insurance
These policies provide coverage of remediation costs associated with unknown pollution conditions at specific sites, along with third-party bodily injury and property damage.

Owens Group has the expertise to help you assess existing and potential risks, and provide comprehensive protection for your company.