Examples of McGriff Customized Transaction Solutions
Senior representatives throughout the McGriff organization are prepared to address whatever transactional issues you may be confronting. Our team members have been successful in implementing many form of customized insurance programs, including but not limited to:
Environmental Caps & Buyouts
Protects against the uncertainties associated with environmental cleanup costs. This product covers costs associated with known contamination conditions that require remediation and eliminates the risk of cleanup cost overruns. Coverage is also available for unknown liabilities on a pure risk transfer basis.
Group Purchasing Programs
Coordinated program placement and management combined with attentive local service. It provides portfolio companies with consistently broad coverage and increased availability of coverage/limits.
Utilize insurance company balance sheets to guarantee cash flow, lease payments or enhance a firm’s credit position with rating agencies.
Tax Opinion Guarantee Insurance
Protects a client’s tax position, supported by an opinion letter, against a future adverse ruling by the IRS. By transferring in certain tax exposures to a third party, private equity investors are now able to sell their portfolio company(ies) and eliminate the required tax escrow.
Aborted Bid Costs
Reimburses the insured company for direct costs associated with an aborted transaction that has failed for identifiable reasons outside the control of the insured entity (Regulatory Intervention; Counter Bid; withdrawal by other party to the transaction).
Retrospective IBNR Coverage
Protects a client against unknown claims that have yet to be reported. This coverage stabilizes the balance sheet against an event that could disturb a corporation’s financial picture.
Alternative Collateral Strategies
Replace letter of credit requirements for self-insured workers compensation obligations, through the use of a surety bond. Reviews Seller’s insurance collateral obligations to evaluate alternative methods to collateralize the obligation, such as surety bonds and insurance trusts.
Letters of Credit
A letter of credit (LOC) is the extension of credit by one party to another in support of a business transaction guaranteed by a bank. In a risk management context, an LOC involves three parties: the buyer of the LOC (the insured), the issuer (the bank), and the beneficiary (the insurer, regulator, government entity, or other party) in whose favor it is drawn.
Representation & Warranty Insurance
Provides coverage for a breach of the seller’s representations and warranties in a merger or acquisition transaction. For private equity clients looking to close a transaction, this coverage reduces or eliminates the escrow requirements typically outlined in the purchase and sale agreement.