CFC launches new solution for M&A intellectual property risks

CFC has developed a solution to cover intellectual property infringement risks during a merger or acquisition.

Angus Marshall, transaction liability practice leader at CFC, said: “Buyers frequently purchase transaction liability insurance to protect themselves against financial loss resulting from breaches of the representations and warranties (reps and warranties) made by the seller regarding the company being acquired, including reps and warranties in relation to IP.

“While these policies afford some IP protection, the extent of this protection can vary depending on the scope of the IP reps and warranties.”

CFC said the relevant IP reps and warranties may include qualifiers which typically relate to issues which occurred prior to acquiring the company and do not provide any protection against future IP infringement allegations.

Kristian Kolsaker, intellectual property underwriter at CFC, added: “By adding CFC’s standalone IP cover to CFC’s reps and warranties insurance, clients can secure holistic IP coverage for both past and future IP risks via a single, streamlined underwriting process.”

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