Brochure
87.3 KB
Representation and warranty insurance for both buyers and sellers, backed by the largest transaction liability team in London.
Explore our transaction liability products to learn more
Transaction liability
Available to buyers & sellers offering cover for representations & warranties, contingent tax, and other M&A liabilities
Key features
- Bespoke cover
- Breach of warranties
- Clean exit
- Bid enhancement
- Limited seller security
Seller protect
An innovative insurance policy designed specifically to protect sellers of small businesses from the risks they face during an M&A transaction.
Key features
- Covers you in the event the buyer brings a claim against you for an innocent breach of the seller warranties
- Legal counsel
- Coverage can be placed within 24 hours following receipt of the application form
- Coverage can be arranged post completion
Downloads
Buyer protect
An innovative insurance policy designed specifically to provide buyers of small businesses with peace of mind during and after the transaction, providing cover for up to 100% of enterprise value (EV).
Key features
- Covers you in the event the buyer brings a claim against you for an innocent breach of the seller warranties
- Coverage can be placed within 24 hours following receipt of the application form
- Coverage can be arranged post closing
Downloads
Secondary liquidity solutions
A range of bespoke solutions to private market investors who are acquiring, divesting or restructuring interests in private equity, private credit or other fund assets.
Key features
- Dedicated secondaries underwriting practice
- Speed and certainty
- Dedicated M&A claims team
Downloads
Why choose CFC for transaction liability insurance?
Established in 2016, our transaction liability team is made up of over 50 professionals based across CFC’s global office network. We facilitate deals and the allocation of risk using insurance backed solutions to support a range of acquisition and portfolio management strategies for both private equity and corporate clients. These solutions can be applied across a range of M&A structures, sectors, vintage years and geographies.
Solutions
We actively identify market gaps and develop innovative, commercially-driven solutions. We provide R&W and W&I insurance, buyer protect and seller protect (for deals under $20m), tax, secondaries, contingent, energy, real estate and renewables M&A transactions, excess insurance for fundamental representations, embedded insurance integration into M&A platforms, portfolio solution/roll-up acquisition insurance and transatlantic coverage for cross-border deals.
Experience
We have insured over 2,000 deals across a range of industries worth over $590bn of deal value. Our global team of specialists is made up of M&A lawyers, accountants, investment bankers, insurance professionals and tax advisors which give us unparalleled knowledge and insight into the sectors and industries we underwrite. We view our role in transactions as deal facilitators and work collaboratively with clients to understand issues and ringfence risk. We recognise and respect the trust that our clients place in us.
Limit & appetite
We underwrite on behalf of Lloyd’s of London syndicates and insurance companies all of whom are rated “A” or better (AM best). We have the ability to underwrite up to $50m of limit on a single transaction or $150m of excess coverage for certain fundamental representations. We have appetite to underwrite a range of transactions with a focus on lower-middle market transactions, secondaries, real estate and tax deals.
Claims
With an award-winning claims team to support our underwriting team, we'll support you from the moment you make a claim. We have a team of dedicated transaction liability claims handlers based in our London and New York offices. To date, we have handled nearly 300 claims. We pride ourselves on responsiveness, with an acknowledgement sent within 24 hours of receiving a notification and a collaborative and efficient settlement process.
Meet the transactional liability team
- Angus Marshall
- Head of Transaction Liability
Our transaction liability private enterprise team
- Joe Perrett
- Transaction Liability Product Manager
- Bilal Khan
- Transaction Liability Private Enterprise Underwriter
FAQs
Why does transaction liability insurance exist?
Transaction liability insurance is a valuable tool to help buyers and sellers facilitate mergers and acquisitions (M&A). It means the sellers carry the risk for any liabilities which occurred when they owned the company. If these issues are then discovered after the transaction is completed and causes financial loss, the seller could be found to be financially responsible.
What are representations and warranties?
Representations and warranties are statements of fact. In an M&A transaction, the seller will represent and warrant certain facts about the company which they are selling. An indemnity is a legal promise to be responsible for a third party’s loss if a certain event is to occur.
Who should buy representation and warranty insurance?
Representation and warranty insurance is available to both buyers and sellers in private M&A transactions, and is most often purchased by the buyer.
What other solutions does CFC offer?
CFC also offers solutions for transatlantic M&A, portfolio acquisitions and secondary fund acquisitions.
Is transaction liability insurance available to sellers?
CFC recently launched a first-to-market policy which provides small business sellers with cover for indemnity and defence costs resulting from a breach of sale contract. Learn more about how M&A insurance can help sellers facilitate their deal here.
Want to learn more about CFC's transaction liability policies?
Get in touch!
CFC's policy for the untapped $8 billion small and micro M&A market
Angus Marshall, Head of Transaction Liability will be discussing the launch of the brand-new Transaction Liability Private Enterprise (TLPE) product.
Our latest M&A insurance toolkit for small deals
For many of our partners, M&A insurance is a brand new concept, but selling it doesn't have to be confusing or complicated.
Transaction liability claims: Not so tasty transaction
A newly acquired restaurant chain failed to disclose lease agreements on unfinished builds, as well as alleged violations of labour laws