W&I and specific tax risk insurance has proliferated and tax claims are emerging. Julian Feiner (DAC Beachcroft) explains the unique framework for claims.
W&I insurance originated in the 1980s as an innovative way for private equity sellers to provide discrete warranty and indemnity protection to bidders while shielding the sellers’ liability for future claims. It flourished following the financial crisis of 2008 in a climate of heightened risk awareness to meet buyers’ demands for extensive warranty and indemnity protection without the need for sellers to have escrow arrangements or delay returns to investors.
Demand for the product together with the increasing capability of insurers has expanded the market beyond insuring transactional tax risks under W&I insurance to now insuring specific tax risks that arise in routine business transactions such as company reorganisations financing and leasing transactions. The scope of...
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W&I and specific tax risk insurance has proliferated and tax claims are emerging. Julian Feiner (DAC Beachcroft) explains the unique framework for claims.
W&I insurance originated in the 1980s as an innovative way for private equity sellers to provide discrete warranty and indemnity protection to bidders while shielding the sellers’ liability for future claims. It flourished following the financial crisis of 2008 in a climate of heightened risk awareness to meet buyers’ demands for extensive warranty and indemnity protection without the need for sellers to have escrow arrangements or delay returns to investors.
Demand for the product together with the increasing capability of insurers has expanded the market beyond insuring transactional tax risks under W&I insurance to now insuring specific tax risks that arise in routine business transactions such as company reorganisations financing and leasing transactions. The scope of...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
