Add Text Here...


Financial insurance involves the transfer of risk from the insured to the insurer. Risk distribution is accomplished by spreading risk over time rather than pooling it with other risk for an annual period as is the case with conventional property & casualty coverage. Financial insurance is a "finite product" which means the maximum loss payable by the insurer is predetermined and aggregated over the term of the policy.

•     Directly Influenced by the insured's loss & risk appetite/financial experience.

•     Can shield an insured from the swings in insurance markets.

•     Motivation for purchase is the need for alternative risk financing to assist in Balance Sheet &        Income Statement Management.

•     Flexible - Products are tailored to meet the specific needs of a client 

•  Multi-Year Term - Products are structured as multi-year contracts, making them a strategic risk    financing tool

•   Profit Sharing - If loss experience is better than actually forecast, the insured shares the reward with the insurer.

•     Premiums - Alternative methods for premium collection and financing.

•   Experience Account - Includes the concept of claims paid, premiums earned and earnings on the account balance thereon.

•     Risk financing is stabilized over time.

•     Coverage can be secured for traditionally "uninsurable" exposures. 

•     Earnings and/or cash flow can be stabilized. 

•     The variable impact of insurance market forces can be minimized.

Tax Indemnity Insurance

Tax Indemnity Insurance guarantees an insured that if an insured does not obtain the particular tax benefits anticipated in a transaction as more fully described in a tax opinion, or in the tax years specified, that the insurer will indemnify the insured for the full amount of the tax loss sustained, plus any ancillary expenses.

Conversely, Tax Indemnity Insurance can be used to guarantee to an insured the specified adverse tax consequences will not occur in the future.

Representation & Warranty Coverage

Structural Indemnities are designed to provide business with economic certainty as to the tax implications of a transaction or investment, the structural integrity of a transaction's documentation or the financial viability of seller or borrower reps & warranties. Consequently, Structural Indemnities may facilitate a business' ability to make, and effectuate, commercial decisions in a timely fashion and in a guaranteed manner.

Structural Indemnity Insurance 

There are no preconceived restrictions on the situations to which Structural Indemnities could apply. Some of the applications are:

Tax Indemnity Coverage
Representation & Warranty Coverage
Accounting Indemnity Coverage
Structural Warranties