CFC is initially making Seller Protect available on the Flippa.com online M&A marketplace.
M&A platforms are changing how small business assets are bought and sold with an increasing number of small businesses using them – yet many of these businesses aren’t aware of the insurance protection available to mitigate the risks presented in any merger or acquisition deal.
Embedding Seller Protect into these platforms and enabling customers to opt-in to purchase the cover at a time that suits them in the M&A process addresses the issue head on, delivering valuable protection that is relevant to small businesses, simple to understand and at a price they can afford.
Most embedded insurance products are simple personal lines, like travel, so to be able to embed a complex transaction liability insurance product represents a major achievement. We’re able to do this as the underwriting is driven by in-platform data with no application forms, no conventional underwriting and no broking required. Automated pricing and policy documentation, aligned with the deal process in the marketplace, is provided from specially designed and scalable CFC API technology. George Beattie, Head of Innovation, CFC
Seller Protect insures sellers for their legal liability arising from innocent misrepresentations made to the buyer, providing cover up to 100% of the seller’s indemnity plus defence costs and access to experienced legal counsel and support.
It is CFC’s first insurance solution in a planned suite of products being developed by its dedicated innovation team working alongside CFC’s transaction liability underwriters, with capacity provided under the Lloyd’s ICX innovation risk code facility.
Gus Marshall, Head of Transaction Liability at CFC, adds: “This innovation enables us to bring brand new premium to the market from a completely new type of insurance buyer as the customers we are aiming to help couldn’t access this type of cover previously. It underlines both our leadership within the SME transaction liability space, and our commitment to product innovation led by product design, technology and novel distribution.”
Tony Xu, Head of Product at Flippa, the first platform to embed this product, commented “CFC provides a scalable way to provide insurance at scale for a global M&A marketplace”
Read more about CFC’s transaction liability suite of insurance solutions.
