Products
Transactional Liability
Transactional Liability Insurance (TLI) is a vital tool for buyers and sellers navigating mergers and acquisitions (M&A). It helps manage deal risks, unlocks capital, and facilitates smoother transactions.
With over 30 years of combined broking and underwriting experience, our dedicated TLI team delivers tailored solutions across the full suite of products as listed below.
Warranty & Indemnity (W&I) Insurance
Covers losses arising from unknown breaches of warranties or claims under a tax covenant.
Cost
Typically 0.4%–1% of the insured limit.
Market Insight
Intense market competition has reduced pricing and accelerated underwriting, making W&I viable across a wide range of M&A transactions.
Common Features
- Buy-side and sell-side policies placed in under a week
- Synthetic warranties increasingly used
- Enhancements available for known risks
Tax Insurance
Isolates known tax risks outside the scope of W&I, providing financial protection if a tax liability is challenged by a tax authority.
Cost
Ranges from 0.75%–7% of the insured limit.
Market Insight
Increased scrutiny from tax authorities has made tax insurance essential for protecting balance sheets in both M&A and operational contexts.
Common Insurable Risks
- Withholding tax
- VAT
- Deductibility issues
- SDLT
- Trading vs. investment classification
- Transfer pricing
- Contractor vs. employee status
- Individual tax exposures
Title & Legal Indemnities
Covers ownership risks in shares and real estate, supplementing title warranties in SPAs. As a ‘no fault’ policy, no breach needs to be proven.
Cost
Typically 0.1%–0.3% of the liability limit (often full enterprise value).
Market Insight
Combined W&I and title policies now offer broader protection and simplified placement.
Typical Covered Risks
- Legal restrictions
- Missing documents
- Boundary disputes
- Planning breaches
Contingent Risk Insurance
Tailored coverage for low-probability, high-impact known risks — often involving litigation or regulatory uncertainty.
Cost
Ranges from 4%–15% of the insured limit.
Market Insight
Increasingly used to unlock stalled transactions or release balance sheet provisions, especially outside traditional M&A, enabling dormant capital to be recycled.
Common Applications
- Legal interpretation issues
- Pension liabilities
- Shareholder and TUPE disputes
- Accounting treatment challenges
- Environmental and regulatory risks
Contact us
Our experienced team is here to help you, providing tailored solutions for the most challenging insurance needs. Contact our team for more information.
