AMANIKI offers tailor made Transactional Risk Solutions with Insureds in various jurisdictions across EU/EEA/UK and South Africa with Worldwide exposure.
Furthermore, our Underwriters offer a range of language capacities including English, German, Italian, Swedish, Spanish, Hungarian, French, and Turkish and offer policies under the respective local law.
Warranty & Indemnity Insurance
AMANIKI offers tailor made Sell-Side and Buy-Side W&I Policies.
Covering losses resulting from unknown breaches of Warranties and Indemnities given by the seller to the purchaser in the purchase agreement.
AMANIKI effectively “takes the position” of the person or entity giving the contractual warranties and/or indemnities in the purchase agreement.
This allows the buyer to recover loss arising out of warranty breaches directly with AMANIKI.
However, W&I is not intended to replace a robust disclosure and/or Due Diligence process.
As a result, each W & I insurance policy is a highly bespoke, tailor-made product fitted to the specifics of the deal.
A Tax Liability Insurance policy covers losses from known/identified tax risks which are uncertain or difficult to quantify.
Such risks often arise out of a legal conclusion on a specific tax position (question of law rather than a question of fact) adopted by the target, which could potentially be the subject of future challenges by tax authorities.
TAX RISKS WE COVER:
In principle, most taxes can be covered where the exposure arises out of a commercial transaction (e.g., trade tax, real estate transfer tax, value added tax etc.), together with interest and (non-criminal) penalties. Some examples include:
■ Award or final determination of tax liability,
■ Interest and insurable penalties,
■ The application of withholding taxes to payments,
■ Reclassification of transactions and payments,
■ Cross-border restructuring (historic),
■ Entity classification, employment tax issues,
■ Residency for tax purposes,
■ Secondary liabilities for the taxes of the Seller and,
■ Application of real estate transfer taxes to transactions.
During the Due Diligence process, a special risk could be identified which may have the ability to become a “roadblock” in the risk allocation process.
For instance, neither the sell-side nor the buy-side may be willing or able to bear this specific risk.
CONTINGENT RISKS WE COVER:
■ Threatened legal action,
■ Contractual disputes,
■ Potential IP infringement,
■ Challenged permits,
■ Potential challenge to compliance with zoning laws.