Deal Point: The potential purchaser of a building had initially sought to have the transaction structured as an asset sale, however, the seller was only willing to enter into a stock sale. Although under the asset purchase scenario, the potential purchaser was willing to assume many of the typical business risks, there were certain legal risks attendant with the stock acquisition that it was unwilling to assume.

Transactional Insurance Solution: A Legal Contingency Insurance policy is purchased that will provide the purchaser with protection against unknown exposures that relate to certain identified hazards that would not have been assumed by the purchaser under the proposed asset purchase, but would be assumed under a stock purchase structure.