Asset Purchase: Legal Contingency Insurance

Deal Point: A strategic investor is in the process of buying a division of a mid-sized publicly traded manufacturing company in an asset purchase. The purchaser of the division has agreed to purchase all of the assets and the liabilities of the division except the specific liabilities which are deemed to be "retained liabilities". The purchaser is concerned about successor liability claims against it relating to the liabilities retained by the seller.

Transactional Insurance Solution: A $30,000,000 insurance program is structured to protect the purchaser against successor liability claims related to retained liabilities.