Transactional Liability Insurance

Risk allocation is central to every M&A transaction. Private equity funds, strategic buyers and sellers increasingly turn to transactional liability insurance (representations and warranties insurance (RWI), tax indemnity insurance, and litigation risk insurance) as an efficient solution to manage those risks. As a result, established carriers and managing general underwriters, as well as new and emerging markets, recently combined to issue a record number of RWI policies. Carriers report paying more than $1 billion in RWI claims, involving transactions across a wide range of business sectors.

PierFerd’s Transactional Liability Insurance Practice stands ready to assist carriers and their agents as they analyze, adjust, negotiate, mediate and, if necessary, litigate or arbitrate claims. Our team has experience working with industry leaders on various claims, including tax indemnity claims and RWI claims alleging breaches of representations involving accounts receivable, absence of changes, condition of assets, compliance with laws, financial statements, internal controls, material contracts, and undisclosed liabilities. We regularly work with financial and other consultants to evaluate these claims. Our attorneys efficiently identify important issues and effectively analyze complex policy and claims questions. If the claim leads to a dispute, we rely on our extensive (re)insurance litigation and arbitration experience to navigate a resolution consistent with our client’s intentions and expectations.