Contingent legal risks are risks that come in many forms, but the common thread being that they are all risks that are capable of legal analysis.
Every Contingent Legal Risk Insurance policy is bespoke to the specific facts related to the legal risk or the litigation to be insured.
Those tailor-made policies can be implemented within the context of a M&A transaction and offers coverage for a broad range of contingent legal risks for which neither party to the transaction will accept financial responsibility. This policy can be particularly responsive to a specific legal risk identified in the course of the due diligence process for which the seller is not willing to provide for an indemnity under the share purchase agreement or the investment agreement. This differs from Liberty GTS’s Representations & Warranties (R&W) Insurance, which covers only unknown exposure.
The GTS underwriting team will focus on the specific facts that shape and inform the contingent legal risk.
