Deal Point: A company with a less than investment grade credit rating is in the process of making a significant lump-sum payment in connection with the early termination of a contract. Despite the fact that the lump-sum is an extreme resolution of the termination of the contract for the company, the contract counterparty is worried that in the event of the bankruptcy of the company, there will be an attempt by the estate to claw-back the payment as a preference payment.

Transactional Insurance Solution: A Clawback Contingency Insurance policy providing coverage in the event that the lump-sum payment is successfully clawed back.