Transaction Liability

Did you know that the specialist M&A insurance market is now keeping pace with your fast-moving deals? We provide innovative and bespoke risk management and insurance broking solutions for risks arising in transactions.

• Distressed and insolvent companies involved in M&A activity are likely to have a variety of issues on the table, many of which can be addressed through transaction insurance products.
• Mergers and acquisitions provide opportunities for growth and expansion, but also new risks.
• The due diligence process of a transaction can highlight latent issues that could block or stop a deal.

Fortunately, sophisticated insurance markets understand the M&A market’s complex challenges and there are insurance solutions for many deal-breaking issues.

Aon’s transaction liability team, helps ring-fence your potential liabilities so that transactions can complete. We look at a transaction’s stress points and expand existing products to deliver bespoke insurance solutions. We preserve the confidentiality of all transaction details and offer 24-hour availability of our team to address any questions or concerns.

We will tailor these standard products to fit your specific transaction:

Warranty & Indemnity (W&I) insurance

This type of transaction insurance can protect the seller or buyer for a breach of seller warranties (or tax indemnity) given in a sale agreement.

Tax Opinion insurance

This covers the liabilities incurred post transaction if the tax authority disagrees on the preferred tax treatment of a specific matter that has been identified as a potential issue pre completion.

Legal Opinion insurance

This addresses potential legal impediments to the conclusion of a deal. These will usually be pre-identified hurdles yet to crystallise, such as divergence of opinion over the potential outcome of a specific issue.

Claim or Litigation buyout

This policy covers the costs of a court judgment, or an approved settlement, and defence costs incurred in litigation up to the agreed cap.

Prospectus and IPO liability insurance

This provides cover for the liabilities incurred in a public offering of shares.

Last updated 12 March 2009

Aon Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only. FP5567