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Transactional Risk Insurance

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We offer insurance products suited to both buyers and sellers, allowing them to manage the risks inherent in mergers and acquisitions.

Coverage

What it covers

Chubb’s W&I insurance covers losses arising from either unintentional or unknown breach of warranties and we cover the costs associated with defending any claims. The warranties apply to all aspects of a business, including;

 

  • Company structure and share capital 
  • Accounts (audited and management)
  • Assets (owned by the company)
  • Material contracts (in force and valid)
  • Insurance (existing policies)
  • Employment matters (employees and remuneration)
  • Real estate
  • Compliance
  • IT and intellectual property
  • Tax

 

 

 

We provide distinct cover for either buyers or sellers, and we tailor the policy to each individual deal. Our underwriters in both Asia Pacific-based and international businesses, are all serviced through our network of local offices. We offer policy limits of up to USD$100 million per risk.

Policy benefits

Benefit for buyers

  • Facilitates transactions where there is a gap in commercial expectations or negotiations
  • Differentiates the buyer in a competitive auction process
  • Protection against the collectability or solvency risk from a seller’s unsecured liability

 

Benefit for sellers

  • Facilitates transactions where there is a gap in commercial expectations or negotiations
  • Quicker access to sale funds
  • Individual sellers can protect themselves against default by other
What information do we need?

To consider a risk, we’ll need to know:

  • Transaction information about the target, the seller and the buyer
  • Background to the deal, including rationale, auction process and value

 

Documentation relating to:

  • Information memorandum
  • Accounts and management accounts
  • Share Purchase Agreement
  • Disclosure letter
  • Due diligence report
  • Data room access

 

Chubb insurance is issued by Chubb Insurance New Zealand Limited (Chubb) Company No.104556, FSP No. 35924. Chubb only provides factual information and does not consider your objectives, financial situation or needs. To decide if this product is right for you please refer to the policy.

Interested in these Chubb policies?

 

Have a question or need more information?

Contact us to find out how we can help you get covered against potential risks
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