Financings & Investments

In the current financial market, where the ability of a business to raise capital or borrow funds has become quite constrained, the existence of an identified or potential exposure often can diminish or eliminate the appetite of a potential investor or lender to make an investment or loan. The credit committee of a lender may view their business as assessing credit risk and may have no appetite to analyze the risk that an identified or potential exposure may have a financial impact on the borrower and its ability to repay a loan. Similarly, a potential investor may not wish to take the risk that the value of its investment will be impaired because of a potential or identified exposure that is viewed as being outside of the investee’s operational risk crystallizes. Absent an indemnity from the current shareholders or executives of the relevant company (assuming that their credit-worthiness is acceptable to the potential lender), exposures that have the capacity to change the risk profile to a lender or investor can result in a loan or investment opportunity being declined. Such an indemnity, if acceptable, defeats the purpose of raising capital or funds from outside sources.

Ambridge’s products can help to solve such a concern among the parties to a financing or investment by tailoring insurance to cover one or more identified or potential exposures that prevent the successful raising or borrowing of funds by a business. With significant limits of liability and long term policy periods available, as well as a veteran team of underwriters, Ambridge can creatively construct insurance policies to address such liabilities, allowing potential lenders to focus on making their decisions based upon a borrower’s credit risk and investors to focus on evaluating their potential returns on an investment without having to consider the impact of an identified or potential exposure on their investment.