Contingent Risk Insurance
What it is
Designed to cover specific, known legal risks identified in a transaction or structure. It allows parties to reduce or remove those risks from their balance sheet, creating greater certainty around completion and future outcomes.
In an M&A context, sellers can use contingent liability insurance to prevent identified legal issues from delaying or derailing a deal.
Buyers can use it to ring fence a particular legal risk found in due diligence, strengthening their offer without demanding extra protection from the seller.
Keeps transactions moving - prevents known issues becoming sticking points
Helps avoid escrows or price-chips
Caps worst case exposure outcomes
Reduces uncertainty in complex situations
Facilitates clean exits for sellers
Comprehensive risk transfer solution, particularly when used alongside W&I insurance.
Speak to a specialist
Eleanor Wilson-Holt
Head of Contingent Risks
Any further questions?