Top 10 Insurance Tips for Year End Transactions
The end is near. 2018 is fast coming to a close, and it is that time of year when corporate lawyers are counting—not the number of shopping days left until Christmas, but the number weeks, days and hours left before the end of the fiscal year. Admittedly, in the scramble to close deals, insurance requirements and indemnity provisions may not be at the top of the list of critical deal points for clients and counsel. But, in the larger scheme of things, law libraries and LEXIS are littered with the sad stories of parties, who paid too little attention to such details. Money is the mother’s milk of litigation, and ensuring the availability of adequate insurance and indemnity coverage cannot be overemphasized.
For those working on corporate transactions, here are some practical reminders and best practices for drafting indemnity provisions and insurance requirements. As always, individual circumstances may vary. What is good advice for an indemnitor may be terrible advice for the indemnitee, and vice versa. The following top ten tips are framed from the perspective of the indemnitor and buyer in a transaction, but can be adapted to circumstance.
Though often treated as boilerplate, insurance requirements and indemnity provisions have been the salvation and undoing of countless companies and their counsel. For corporate and in-house lawyers alike—whether working to close before December 31 or toiling into 2019—these top ten insurance tips can help to anchor transactions and free parties to focus on the broader deal points in a negotiation.
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