M&A Transactions Insurance: Maximizing Deal Value, Managing Risks, Solving Challenging Negotiation Points

This CLE webinar will discuss the latest trends in transactional insurance in M&A deals as a strategic way to manage risks and improve deal and business outcomes for both purchasers and sellers. The panel will explore the different types of transactions insurance available, including representations and warranties insurance (RWI) (buyer and seller side), litigation insurance, and tax insurance; the advantages and characteristics of such coverages; common terms, conditions, and exclusions of transactional insurance coverage; the costs of transactional insurance; available limits of liability; and required retentions. The panel will provide practical insights for navigating the underwriting process. The panel will also review the claims process and common claims issues presented, as well as provide practical guidance for policyholders in presenting claims and for insurers in responding to claims.

Every M&A deal has uncertainties that create risk exposure for both buyers and sellers and these risks can ultimately prevent a deal from going through or greatly change the intended outcome. Transactions insurance has become a critical risk allocation tool to shift risk away from the deal parties, to help solve challenging negotiating points, and to facilitate the completion of transactions.

RWI is the most common type of transactional insurance and is designed to cover breaches of representations and warranties about the target business made in an M&A agreement. Other types of transactions insurance provide a range of coverages for contingent liabilities, tax indemnity, environmental conditions, intellectual property, employee issues, potential litigation, and cybersecurity and data privacy issues.

Listen as our authoritative panel reviews how transactional risk insurance can be effectively used in M&A deal negotiations, the benefits and pitfalls associated with the different types of insurance, and factors to take into account when negotiating coverage and exclusions.