has launched a suite of three transactional risk liability insurance products that are meant to help businesses increase deal value and maximise returns, enhance buyers' bids in competitive auctions and bridge gaps in deals with significant obstacles in closing.
The three new products are:
- Warranties and indemnities insurance – This policy will cover financial losses in case of an unforeseen breach of seller’s warranties during a merger or acquisition.
- Contingent tax indemnity insurance – Provides cover from known contingent tax exposures as result of tax treatment of a past transaction, investment or any other legitimate business activity.
- Contingent liability insurance – Covers known exposures that may emerge after a transaction is finalized, such as open-ended indemnities, successor liability, and/or potential litigation.
The new products target dealmakers such as strategic buyers and sellers, private equity sponsors and business owners, as well as their advisors and managers.
Timothy O'Donnell, executive vice president for overseas general insurance, financial lines, said: "This launch marks a step change in Chubb
's global transactional risk capabilities in the international markets. Transactional risk is an area that has risen in profile and significance and the launch of these products reflects the increasing demand we are seeing from corporate clients and their brokers across the UK and beyond. “