Transaction Liability

Transaction liability insurance products are structured to protect against financial loss arising because of inaccuracies in representations or warranties made in share and asset purchase agreements. Available to both parties, policies can minimize seller liability on business exit, enhance bids by potential buyers and bridge differing indemnification expectations.

Target Markets

Manufacturing
Technology
Retail/leisure
Hospitality
Education
Transportation
Real estate

Product Highlights

Transaction Liability Product
- Built for enterprises valued between $15,000,000 and $500,000,000
- Limits up to $65,000,000
- Minimum premium of only $120,000
- Typical retention is 1% of enterprise value, dropping to 0.5% at 12/18 months past closing
- Average underwriting fee $40,000
- Bespoke policies
  - Each merger or acquisition transaction is unique, so each policy is tailored to meet the specifics of the deal
- Able to offer coverage for Quebec law governed acquisition agreements
- Optional coverages:
  - Transatlantic coverage
  - Erosion of the retention for interim breaches
  - Minority investment and rollover coverage requirements
  - Nil retention for fundamental and certain tax representations
  - Additional capacity available for fundamental and tax representations
  - Exclusive ‘Portfolio Solution’ available to clients making a series of bolt-on / portfolio acquisitions. Our solution provides for a cost effective insurance solution with streamlined underwriting and certainty of coverage
Private Enterprise Product:
- Limits up to $15,000,000
- Nil retention
- Premiums as low as $2,500
- Policy fee is $500
- Policy period is 7 years
- Included coverages:
  - Defence costs coverage
  - Breach of warranties coverage
  - Full indemnity policy limit
  - Duty to defend coverage
  - Buyer as loss payee

Submit your applications to: underwriting@taycon.ca