InCrowd
Insurance Essentials for corporates

Our insurance services supporting transactions 

M&A transactions inevitably involve risk and increasingly participants on both sides of transactions are turning to insurance to minimise such risks.  Risks include:

• Undisclosed financial liabilities may arise after the close of a transaction.
• Sellers may breach representations and warranties they made in the purchase agreement.
• Past tax liabilities may arise after the close of a transaction.
• A target company’s past activities may result in post-transaction litigation risk.
• Transactions may involve regulatory scrutiny or compliance issues.
• Companies operating in certain industries may face environmental risks resulting in post-transaction liabilities.
• Valuation disagreements may lead to post-closing disputes.

How we can help

Our Insurance team routinely supports clients involved in M&A transactions by helping them with the appropriate insurance protections required for the transaction. We can assist clients by:

• Using our legal and market experience to customise insurance solutions to align with clients’ business objectives.
• Working closely with insurers and brokers.
• Advising on regulatory and compliance issues.  
• Reviewing and negotiating policy wordings.
• Navigating the claims process.
• Training for clients on transactional insurance.

Due dilligence

Due diligence of the insurance policies of target companies is a key part of the transaction process. We conduct a thorough analysis.

Reviewing and negotiating policy wordings

We regularly assist clients – on both sides of a transaction – in relation to the appropriate insurance policy wording for the particular transactional risk. This includes:

• Advising clients on the most suitable insurance policies required to cover their transactional risk.
• Reviewing and negotiating policy wordings – often whilst liaising with brokers, insurers and reinsurers.
• Advising clients on the effect of any exclusions or limitations to cover.

Regulatory compliance

We help clients navigate the complex regulatory framework relating to transactional insurance.

Claims and recovery

Claims can arise under transactional insurance policies when previously undisclosed information comes to light during or after the close of a transaction that is covered by a relevant insurance policy. We regularly assist clients with navigating the claims process, including:

• Notification and valuation of loss.
• Advising on the merits of a claim and mitigation.
• Resolution of any policy disputes.

Types of insurance products