 Transactional Insurance products are designed to address contingencies or disagreements that threaten or impede the completion of a business transaction (we refer to these issues as “deal points”). These products provide insurance to reduce specific exposures, the source of the deal point, to an acceptable level for the transaction party raising the issue.
Ambridge underwrites the following Transactional Insurance products:
Because Transactional Insurance products are frequently a more efficient use of capital, they often provide a more viable alternative to the traditional methods used to address deal points such as: An indemnity requirement; a letter of credit; funds held in escrow; retention by the seller of a liability relative to a contingency; accepting a reduced financial consideration .
These products can also be an effective response to common themes that underlie deal points and threaten transactions:
- Differing appetites for risk;
- Differing perceptions of the extent of the ultimate financial exposure presented by a contingency;
- Disagreements on how the financial risk for a given exposure will be allocated;
- The unfamiliarity of one party with the legal, political, or regulatory climate of a certain jurisdiction or surrounding an industry;
By enhancing the speed with which a transaction can be completed, Transactional Insurance products can solve problems that might not otherwise be addressed within a required timeframe.
Transferring part or all of the financial responsibility for a contingency or deal point to a Transactional Insurance product provides the parties to a transaction with greater post-transaction flexibility. For example, delays and complications associated with posting an escrow or providing an indemnity can be avoided, and additional post-transaction financing can be expedited by assuaging the concerns of potential lenders.
As you review our products please keep in mind that the examples presented are by no means inclusive of all the potential applications. We are specialists in customizing insurance products to solve the unique difficulties and specific deal points associated with your transaction. For more information,
contact us. |
