Tax & Contingent Risks

A tax risk insurance policy is designed to provide financial cover in the event an identified tax risk crystallises into an actual liability by transferring the identified tax risk to the insurance market.

Leveraging the deep technical knowledge of our brokers, we work with the tax risk insurance market to design innovative insurance solutions that address the complexities of today’s dynamic and ever-changing global tax landscape.

Contingent & Litigation Risk insurance provides cover for loss arising from crystallisation of known legal risks. Cover can be placed in a range of different contexts, including M&A transactions, Restructuring & Insolvency, Litigation & Litigation Portfolios, Legal Assets Investing and Banking & Finance. While available capacity can vary based on several factors, including risk type and remoteness, limits of up to £300m can be available for a single contingent risk.

Our team of specialists leads with a forensic approach to the assessment of risk, developing innovative insurance programmes structured to best deploy market capacity to achieve the Client’s commercial goals.

We advise clients across the full suite of Contingent & Litigation Risk insurance products, including but not limited to:

• protection against an adverse outcome in relation to a legal risk or ongoing proceedings (Adverse Judgment Insurance)
• preserving a favourable outcome in legal proceedings against appeal risk (Judgment Preservation Insurance)
• setting a floor on anticipated proceeds and timing for a claim or portfolio of claims (Capital Protection Insurance)
• protection against adverse costs orders in proceedings, including to help a claimant avoid the need to pay security for costs into court (ATE Insurance)

Insurance can effectively support contingent fee and damages-based arrangements, reduce adverse costs and increase security for costs requirements, giving Law Firms and their Clients the confidence to proceed. By engaging our team early in the process, we can work with you to structure programmes that best align with your commercial needs, while working to litigation timetables and handling sensitive information appropriately.

Insurance-backed lending enables clients to finance/refinance or achieve an effective early sale of these otherwise illiquid assets, supporting balance sheet optimisation and increased liquidity by facilitating access to finance or financing on better terms. Our team has the relevant regulatory permissions to allow us to arrange such debt placements for clients in certain jurisdictions.

For Law Firms, the same approach can be applied to portfolios of contingent fees or damages-based arrangements, allowing Law Firms to:

• convert future receipts into working capital
• transfer risk of not being able to realise the value of the contingent assets to the insurance market
• raise capital via traditional and alternative lenders, secured against the insured contingent assets to drive liquidity