Mitrovic Consulting

One of the lessons I learned working with private equity and transactional insurance is that a known liability does not necessarily have to kill a transaction or even permanently depress a company’s valuation. A company or asset may have a significant underinsured or uninsured liability—litigation, environmental exposure, a toxic tort claim, or another contingent risk—that neither the buyer nor the seller wants to retain. The buyer may respond by substantially discounting the

In the late ’80s and early ’90s, I had the opportunity to develop yet another transactional insurance product in addition to representations and warranties insurance. That product was contingent liability insurance—a solution for underinsured or uninsured liabilities that were preventing the sale or purchase of companies or assets and, in some instances, inhibiting market capitalization growth and share appreciation. Typically, in these transactions, I would incorporate non-d