We have designed our Successor Liability Insurance policy to address the concerns of a purchaser that, by purchasing certain assets, they will also become legally obligated for liabilities imputed to the assets purchased, despite express language in the purchase contract carving out these liabilities.

In today’s litigious world, legal actions initiated utilizing a “successor liability theory” can be brought for a number of reasons including:

• Attempts to recoup losses when a seller or transferor of assets has liquidated, dissolved, or otherwise become insolvent.
• As part of a litigation strategy to bring additional pressure on a seller or transferor of assets to settle a pending action by involving, or threatening to involve, a prospective purchaser or successor entity which would not otherwise have been involved in the litigation.
• In an effort to maximize the potential source of financial recovery.

Whatever the motivation, claims of successor liability against a purchaser or transferee can have a chilling effect on an otherwise commercially advantageous transaction. Ambridge’s Successor Liability Insurance Policy can protect the purchaser or transferee against the financial risks related to these exposures.

For an example of a "successor liability" exposure click here.