Corporations – and the financial institutions that work with them – rely on insurance to help manage risks for everything from commercial general liability to every aspect of complex mergers and other corporate transactions. Pepper Hamilton helps businesses assess their risk management practices, evaluate available insurance options and negotiate the most effective and practical coverage.
Pepper advises both insurance companies and corporate clients through all stages of the insurance relationship: from evaluation and underwriting of commercial exposures to risk, to the analysis of standard and manuscript wordings in various products forms, through to the submission and negotiation of coverage for claims. We have worked with all types of entities involved in the insurance relationship (such as agents, brokers, intermediaries, MGAs and TPAs), and we thoroughly understand the key concepts that apply to insurance or risk-transfer contracts, such as triggers of coverage, allocation issues, the duty to defend, deductible billing, self-insured retentions, and other terms and conditions fundamental to primary, excess or umbrella obligations, or other reinsurance or alternative structures. Because of our experience in reinsurance, we also counsel about captive formation and other self-insurance or alternative risk-transfer programs.
Our practice includes assisting with corporate insurance renewals, including a thorough review of policy terms, limits and premiums, and assessment of whether coverage meets the organization’s risk management needs. Frequently, corporations just accept what is offered at renewal, or rely on the advice of its insurance broker or agent. An independent analysis of the renewal policies and available options may result in lower premiums and/or extended coverage.
We also help corporations and financial institutions decide what insurance products best meet their risk management needs. We review policy language and negotiate with insurers to help tailor coverage to the needs of the company. Our experience includes a wide variety of insurance products, such as directors and officers liability, commercial general liability, errors and omissions/professional liability, employment practices liability, fiduciary liability, environmental liability, cyber and privacy/data security liability, and a host of other products.
Increasingly, Pepper assists businesses with project-specific insurance involving various aspects of mergers, acquisitions and other corporate transactions, such as consulting on representations and warranties insurance, tax indemnity/tax opinion insurance, regulatory qualifications and litigation insurance.
Our lawyers also assist in the due diligence required in mergers and other corporate transactions, comparing the insurance programs of the entities involved in the transaction, assessing overlapping coverage or missing coverage, and making recommendations for a comprehensive risk management program. We also advise insurance carriers and businesses on bankruptcy issues involving insurance, such as claims to the proceeds from corporate insurance; insolvency issues and credit risk.