235 Insurance is an experienced broker of financial insurances, such as Representation and Warranty Insurance. Working within Chicago's spirited merger and acquisition marketplace, we provide national service to investment banking, attorney, private equity, energy, healthcare, and other business leaders who negotiate significant financial transactions.
Transactional liability insurance can be purchased by buyers and sellers in a transaction as they enter into negotiations; at settlement; or after closing to allow for post-release indemnity of an escrow or security ("tail coverage"). The liquidity and security provided by these insurance policies helps facilitate deal agreements, providing leverage and other advantages to competing buyers and sellers in competitve bid situations.
In a transactional liability insurance policy, insurance serves to protect against contingencies which could alter a deal before or after the sale, such as:
Insures either or both parties for damages suffered from the breach of a "representation" or "warranty" made in a business sale agreement, or in other contracts such as investment, shareholder, and loan agreements.
Covers liability to a fund and its managers following liquidation, and has other uses.
Protects against claim damages and defense costs regarding infringement of copyrights, trademarks, and patents.
Litigation is common in the mergers and acquistions landscape. RKH Insurance Brokers, a Lloyds of London underwriting syndicate, estimates that 1 in 4 companies going through a M&A transaction are involved in litigation at some point, and that nearly 1 in 5 of their policies will receive notice of a claim. Policies cover defense costs to limit the risk of litigation expense during or after settlement from spoiling you or your client's high value financial transaction.
To submit an inquiry regarding a financial or transactional liability insurance policy, please contact the Managing Broker, Keith Murphy via email@example.com, with case details.
We are able to write most M&A insurance for 100 basis points or less of the deal size. Commissions and underwriting fees are normally paid outside of premium on these deals, which is unique, so 235 Insurance negotiates with underwriters and clients to agree upon a fair commission for all parties. Our insurance companies work on case sizes as large as $100MM.
We utilize a multiple carrier bidding process with underwriters in Chicago, NYC, London, and elsewhere in order to provide the best value to our customers. And we work with underwriter's who are fluent writing transactional insurance and customizing coverage forms. On larger policies, we will often facilitate direct communication between our underwriters and client advisors to negotiate deals to the best possible terms.
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