As a result of today's litigious environment and an unprecedented number of entities in financial distress, companies are concerned about being the target of a plaintiff's strategy to maximize recovery by naming multiple parties in a lawsuit, regardless of the merits of such suit.

Ambridge's AvoidanceGap® Contingency Insurance product can offer the protection that parties to a transaction or an "ordinary course" of business decision require to address concerns that a "disclaimed liability" will be imputed to them.

Parties involved in the sale of a distressed entity or in the making of "ordinary course" payments may be particularly concerned about a disclaimed liability both in terms of any damages that may be awarded in a judgment against them and the manner in which the mere allegation of such liability could frustrate their ability to successfully complete such transaction or make such ordinary course payments.

Most often, the disclaimed liability relates to:
● allegations that an entity may be the "successor" of another entity by reason of a transaction; or
● an attempt to pierce the corporate or entity veil because an entity is alleged to be an "alter-ego" of another
● entity, or merely a "controlled" front utilized solely to escape liability.

Ambridge's AvoidanceGap® Contingency Insurance can be designed to address these concerns of liability being imputed to them as a result of entering into transactions or other agreements or a third party successfully piercing the corporate or entity veil.