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Why Choose AIG for Litigation Buyout and Special Situation Insurance?

Comprehensive, flexible protection against financial loss following a wide range of events that could prevent the successful completion of Mergers and Acquisitions (M&A).

Australia has strong market conditions for people looking to sell their business. With an effective regulatory model and a stable political and legal environment, Australia can be an attractive environment for offshore investors. These factors support the current M&A activity in Australia.

As in all markets, however, a number of risk factors can hinder the successful implementation of a merger, acquisition, or restructure. These may include product liability disputes, breaches of legislation or regulations, employment, contractual or intellectual property disputes, and those relating to an organisation's operational or trading history.

Litigation Buyout Insurance from AIG can be used to facilitate an M&A transaction and provide certainty and finality to both parties to the transaction. 

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AIG Litigation Buyout and Special Situation Insurance Solutions

Litigation Buyout Insurance coverage allows you to ‘de-risk’ your business by removing or reducing the contingent liability arising out of litigation, which may otherwise represent an unquantifiable liability.

The insurance provides certainty to an insured business as the potential liability arising out of the litigation is quantified and by ‘ring-fencing’ liabilities, potentially removing a deal-breaking obstacle. It can also negate the requirement for the use of escrows or indemnities.

Coverage is usually for a specific known risk, lawsuit or claim, but may also allow for threatened litigation or an anticipated claim. It can also be written to cover a portfolio of claims arising out of the same facts or circumstances.

You may choose to include defence costs in the insurance program limit, or may choose to only cover the amount of any award of damages.

Large capacity

Highly customised coverage for a range of special situations and their potential outcomes with large associated limits is also possible. 

Flexible coverage

Underwriting and cover are customised to provide a tailored solution to meet the requirements of any situation or dispute, regardless of the subject matter.

Ease of reimbursement

Buyers can recover losses directly from the insurer without needing to locate and pursue a seller and its assets.

'Ring fenced' liabilities

Provides security to businesses engaged in M&A activity by quantifying and separating potential liabilities arising from litigation or other event insured.

Exceptional claims handling

Access to our outstanding team of claims professionals who are experienced and expert in litigation relating to complex transactions, ensuring that your claim will be resolved in a professional and efficient manner. 

Provides coverage for businesses that have incurred a contingent liability as a result of a dispute or litigation, and who now wish to ring-fence any associated liabilities, in anticipation of a sale or divestment.

For any enquiries about purchasing, renewing or making a claim on an AIG business policy, please contact your insurance broker or find a broker here.

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View contact information for AIG Australia teams in your state.

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