Liberty Global Transaction Solutions (GTS), part of Liberty Mutual Insurance, has announced the launch of a new contingent legal risk insurance product within its transactional risk portfolio.
As part of the launch Aude Bonnemaison has been appointed as Liberty GTS’ first underwriter dedicated to the contingent legal risk product.
She will report to Liberty GTS Chief Underwriting Officer Gareth Rees, who will also head this new division.
Contingent legal risk policies can cover a broad range of known liability risks, many of which relate to M&A transactions, although they can also be used for stand-alone risks with no connection to a deal.
When used on a deal, the insurance can be used in conjunction with R&W/W&I policies and are often used to cover a known risk that has been excluded from other coverages, and which could otherwise block a deal.
Like tax liability insurance policies, contingent legal risk policies cover known legal risks, whereas R&W/W&I policies cover unknown risks.
Liberty GTS said that its capacity for this kind of insurance will be up to a limit of $165 million per policy.
“The Contingent Legal Risk Insurance product is a natural fit within our portfolio, reflecting our commitment to provide a comprehensive suite of solutions to the M&A market,” said Liberty GTS President Rowan Bamford.
“Our team of seasoned underwriters will focus on the specific facts that shape and inform the contingent risk in order to provide bespoke insurance policy coverage meeting our clients’ needs,” he added.
Examples of the risks that may be covered by contingent legal risk policies include: Court judgement being overturned on appeal, regulatory permits being revoked, and creditor claims preventing cash being released from an escrow.
Liberty GTS operates as a stand-alone business, and underwrites M&A lines of business on behalf of Liberty Mutual’s Lloyd’s of London Syndicate 4472 and Liberty company platforms.
