Insurance Assessment and Strategic Advice for Acquisition, Structuring and Drafting of Captive Policy to Support Transaction

Gilbert LLP was retained by a private equity firm in connection with its acquisition of a company that had potential tort liability arising from certain products it distributed.  Our initial assignment was to assess the applicability of the acquisition target’s existing insurance coverage to respond to potential tort claims against it.  Our work then expanded to evaluating an insurance product the client was seeking from the commercial insurance market to support the transaction, and when that product proved unsuitable, we structured and drafted a captive insurance policy to fill coverage or payment gaps in the existing coverage program.  Our work allowed the client to assess and bolster protection against the acquisition target’s potential exposure to tort liability and thus facilitated the successful negotiation, structuring, and closing of the transaction.