Advocacy in Action: Strategic Recovery After Major Revenue Loss

Following a post-closing contract loss, Castle Harbour led a strategic RWI claims process that secured over $8 million for a private equity client in under six months.

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Castle Harbour was engaged by a private equity client to place RWI for its acquisition of a technology services company. Following closing, the target’s largest customer—representing over 20% of revenue—unexpectedly terminated its contract. Although the seller had represented that customer relationships were stable, a post-closing review revealed that the seller had prior knowledge of the customer’s dissatisfaction and desire to terminate its relationship, constituting a breach of the material customer representation.

Castle Harbour immediately helped the client prepare a detailed notice of claim, aligning the narrative precisely with policy language, and assisted in gathering supporting evidence of both the customer loss and the seller’s awareness. We also proactively engaged the insurer early and positioned the claim strategically to encourage a favorable outcome, maintaining active dialogue throughout to avoid delays. As a result of Castle Harbour’s strategic claims management, the insurer promptly acknowledged coverage, and the client received a material payment exceeding $8 million—covering losses tied to the canceled contract. The matter was resolved within approximately six months of the initial notice, a significantly faster timeline than is typical for RWI claims, and with a highly favorable result that minimized the financial impact to the client.