Transactional Risk Insurance

Helping you close the deal

McGriff has a dedicated group of insurance professionals focused on merger and acquisition risk management. From initial review to closing, we’re with you until the deal is done, combining big broker capabilities with a personalized, boutique agency level of service.

Discover the McGriff differencewhen working with McGriff

Transactional risk capabilities

Provide balance sheet clean-up services
Verify loss reserves
Pinpoint pre-closing and post-closing issues
Identify risk transfer opportunities
Propose solutions to transactional obstacles
Provide insurance cost modeling
Serve as a liaison with other internal resources
Address human resources issues
Address environmental issues

Customized transaction solutions

We have expertise with several customized insurance programs, such as:

Environmental Caps & Buyouts
Protects against uncertainties associated with environmental cleanup costs, covers costs associated with known contamination conditions requiring 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
Provides coordinated program placement and management combined with attentive local service, offering portfolio companies broad coverage and better access to coverage and limits
Credit Enhancement
Use insurance company balance sheets to guarantee cash flow, lease payments, or improve your credit position
Tax Opinion Guarantee Insurance
Protects your tax position, supported by an opinion letter, against a future adverse ruling from the IRS. By transferring certain tax exposures to a third party, investors can sell portfolio companies and eliminate the required tax escrow
Aborted Bid Costs
Reimburses your company for direct costs associated with an aborted transaction that failed for reasons outside your control (such as regulatory intervention, a counter bid, withdrawal by another party to the transaction, etc.)
Retrospective IBNR Coverage
Protects from unknown claims not yet reported, stabilizing the balance sheet against an event that could negatively impact 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
Letters of Credit
A credit extension from one party to another to support a business transaction guaranteed by a bank. In a risk management context, a letter of credit (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’s 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