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PRODUCTS

Key Products

Directors’ and Officers’ Liability Insurance
Professional Indemnity Liability Insurance
Financial Institutions Bond & Commercial Crime Insurance
Fiduciary Liability Insurance
Employment Practices Liability Insurance
Transaction Risk Insurance/W&I

Transaction Risk Insurance - Warranty and Indemnity Insurance
Corporate level transactions, such as Mergers and Acquisitions (M&A), carry risks for both buyer and seller alike:

BUYER -Loss arising due to a breach of warranty can put the buyer in a vulnerable position. Direct pursuit of the vendor can be inconvenient, time consuming, costly and sometimes damaging to business relationships. Indemnification for loss can not always be secured, even where a contractual obligation to pay exists.

SELLER - The smooth negotiation of a deal can be threatened by the vendor’s uncertainties regarding their future contractual obligations and their potential liabilities stemming from inaccuracies in warranties, or claims under the tax covenant. In addition, Buyers are likely to seek some form of security for future claims, which can tie up sales proceeds and hinder a quick and clean exit.


We provide
Warranty & Indemnity Insurance (W&I) offers a convenient solution to both parties. Whether buyer or seller-side, W&I presents significant advantages, providing:
  • a commercially viable alternative to security traditionally sought through costlier and less satisfactory means (such as an escrow account, bank guarantee or letter of credit)
  • a simpler and more effective method of seeking indemnity against a loss resulting from a breach of warranty or tax deed/covenant in a Sale and Purchase Agreement (SPA)
  • a tool to mitigate the vendor's risk for liabilities arising from innocent misrepresentations made by the vendor
  • coverage, afforded to the buyer, for any financial loss as a result of any misrepresentations (innocent or otherwise) made by the vendor
  • a strategic tool:
    • giving the buyer a competitive edge against other bidders for the purchase; or
    • making the vendor's offer more appealing, as the risk is transferred to a financially sound insurer.

We customize
Warranty & Indemnity Insurance (W&I) facilitates the sale and purchase process. Both buyer-side and seller-side policies are available and the policy is structured to meet the risk retention and recourse requirements of the deal parties. We are also able to offer, in combination or separately, further bespoke products that fall under the Transaction Risk Insurance umbrella, namely Tax Indemnity Insurance and Contingent Risk Transfer Insurance.

Key Facts - Transaction Risk Insurance (TRI) >
Program Features 
  • Financial capacity of up to US $15 million (€15 million or £10 million) per TRI policy.
  • Primary or excess
OUR PRODUCTS ARE ISSUED THROUGH THE AFFILIATED INSURANCE COMPANIES LISTED BELOW:

For all international insurance and reinsurance business (excluding USA), we underwrite on behalf of:

HCC International Insurance Company PLC>
  • Direct insurance and Facultative reinsurance

HCC Underwriting Agency (Lloyd's syndicate 4141)>
  • Direct insurance and Facultative reinsurance domiciled in certain other non-US jurisdictions

For all insurance and reinsurance business domiciled in the US and Latin America, we underwrite on behalf of:

Houston Casualty Company (HC)>
  • HC is a Texas domiciled property and casualty insurance company operating worldwide and on a surplus lines basis in the U.S. HC specializes in accident and health, aviation, property, marine and energy.

U.S. Specialty Insurance Company>  
  • USSIC specializes in aviation, occupational accident and alternative workers compensation.

TEAM ADVANTAGE 
Our dedicated team of TRI specialists comprises of underwriting, claims and legal professionals. The team's extensive experience and indepth knowledge of worldwide transaction risk related issues, coupled with our "under one roof" strategy, ensure a high level of professionalism with a fast and efficient service. Being internationally focused means we can offer tailor-made policy wordings in many languages and for multiple jurisdictions.

Meet the Transaction Risk Insurance (TRI) team > 
     
   
     
  To consult a TRI specialist for your region, please email us your enquiry: TRIteam@hcc-global.com
     
  HCC Global Financial Products S.L. is an insurance agent acting on behalf of the following insurance entities in those countries where permitted:

HCC International Insurance Company PLC, authorised and regulated by the Financial Services Authority, No. 202655. Registered in England and in Wales, No. 01575839, with registered office at Walsingham House, 35 Seething Lane, London EC3N 4AH. Ultimate Holding Company: HCC Insurance Inc. Houston, Texas U.S.A.

Houston Casualty Company: State of Texas Insurance Entity Register n. 7407, on 26-5-83. Capital subscribed and issued US$5,000,000. Subject to the supervision and control of the Texas Department of Insurance (Mail Code 305-2C, 333 Guadalupe P.O. Box 149104, Austin, Texas 78714-9104, USA). Branch in United Kingdom, subject to the supervision and control of the Financial Services Authority (25, The North Colonnade, Canary Wharf, London E14 5HS), authorized on 1-12-2001 and registered with n. 203250. HCC Global is registered with n. 416680 at the Financial Services Authority.


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  Tel: +34 93.530.7300
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  Tel: +1(201) 216.1136		   Houston
  Tel: +1(713) 914.8034		   London
  Tel: +44 (0) 20.7327.8190		   Miami
  Tel: +1 (305) 416.3863

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