First and foremost the Purchase and Sale agreement is the basis for Transactional Liability Products and the underwriting criteria for underwriting them. A List of Transactional liability Products 1. Representations and Warranties Policy 2. Tax opinion coverage 3. Loss Mitigation Policy Representations and Warranties Policy Covers breaches in the Reps and Warranties in the Purchase […]
A captive is a retention vehicle just like a deductible . Captives come in many sizes and shapes. They are written in a domicile either in the country or offshore. The selection of a domicile is based on a few different criteria. The Cost of administration of the captive, taxes, overall regulations in the domicile. […]
1. Rep and Warranty Products Used very heavily in the Private Equity Market. Approx. 70 % of PE firms use them. Seller R&W policies are generally used for deal terms. Survival of rep and Warranties, escrow, limit of liability provided. These are quite often used by seller’s attorneys and M&A consulting firms looking to structure […]
How to Navigate the Current market
Yes, the market is tightening . This means the prices are going up and certain coverages will not be obtainable. This hasn’t happened in a very long time. In fact I would venture to say that most of the practitioners in the insurance community were not in the last severe hard market. There have been […]
Update: Good Things To Come!
We here at Colton Risk have so many things to show you in the upcoming weeks! From interactive videos to themed educational blogs about particular topics that’ll be just what you need to help your business grow! Stay tuned and we hope to see you in the comments!
In markets such as the one we are in ,we must think of our fiduciary obligations. This applies to any size private equity firm. There are ways to maximize the savings in purchasing insurance capital. Aggregated leverage is the biggest and the best way. Whether it is benefits or Property and Casualty the aggregated approach […]
It is important to understand in a startup how important the components are. Yes, you need the specific disciplines covered. However, please understand that as a startup it is the utility players that carry the day. Startups are usually understaffed and hopefully growing faster than they are increasing labor. Therefore, the utility player is the […]
It is imperative in a hard market to understand coverages. What they are, what they cover, and why they are necessary. In a hard market underwriters not only want rate they don’t want unnecessary throw-ins that aren’t necessary. They will need to document and explain to their management why they wrote certain things and did […]