It is an insurance product designed to protect the Seller and Buyer in an M&A transaction for a breach of the Seller reps and warranties. TLPE is the only such program available for the sub $30M enterprise value sector.
M&A professionals worldwide are using an insurance policy known as Representation and Warranty (R&W) to transfer risk from the deal parties to an insurance company. This tool has become indispensable in more transactions than ever before, and yet, it has been unavailable to the vast number of M&A deals where the enterprise value is below $30M. That is until now. CFC Underwriting has launched TLPE, a Sell-side R&W policy exclusively for the underserved, “Main Street” market.
"From our perspective, R&W is for Wall Street. We wanted TLPE to be for Main Street"
Professional services, technology services, product businesses, transport and insurance brokers
Healthcare, financial services, heavily regulated industries and deals greater than $30M in Enterprise Value (EV)
Full EV available from $500K up to $30M.
The greater of 1% of EV, or $10,000 per Claim (higher for CA domiciled risks)
From $10K to $20K per $1M of Limits (1.0% to 2.0% ROL). Rate scales to the lower end of the range with more Limits purchased.
None
Designed to match the survival period(s) as outlined in the purchase agreement – up to 6 years.
Prior knowledge, proven fraud in court, misrepresentation of unaudited financials as audited or GAAP-compliant, and contingent liabilities
Sign and date
(enables applicant to skip Q.6.13 on the application)
Within 3 business days
Signed declaration, copy of purchase agreement, and payment
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