Tax Insurance

Tax Insurance shifts the risk — and potential cost — of an identified tax position or transaction from the taxpayer to an A-rated insurer, locking in financial certainty. …Specifically, Tax Insurance is a customizable insurance solution that transfers an identified or potential tax exposure — whether arising from an M&A deal, a restructuring, an audit, a reserve or day-to-day tax-risk mitigation — from the taxpayer to an A-rated insurer, thereby locking in economic certainty and protecting balance sheets. Priced attractively — often just pennies on the dollar — the availability of Tax Insurance across diverse geographies and tax regimes significantly broadens its applicability, allowing taxpayers to operate confidently across multiple jurisdictions. Tax Insurance indemnifies the insured for the full amount of any assessed tax, interest, and penalties, plus the professional fees required to defend the position and a “gross-up” to make the insured whole after any tax on the insurance proceeds. In the context of an M&A transaction, it allows sellers to distribute deal proceeds immediately, frees buyers from indemnity escrows, and enables corporates or funds to remove contingent liabilities from their balance sheets — accelerating closings, simplifying negotiations, and preserving post-deal relationships. For businesses, Tax Insurance provides strategic flexibility by facilitating complex restructurings, mitigating risks in cross-border transactions, and alleviating uncertainty around tax positions, whether in federal, state & local, or international jurisdictions.