As each special situations risk is highly bespoke, it can take time to ascertain what cover we can offer and what precisely is commercially required by the prospective policyholder. Where comprehensive information is provided from the outset, we typically provide a quote for insurance within 48 hours from receipt of the request for terms.

Once appointed to underwrite, subject to the complexity of the risk, we can issue a finalised policy within five business days although we are regularly asked to cover complex issues (e.g. multiple counterparties, litigation, etc) and on average it takes two weeks, but it may take longer.

We will provide an indicative timeline when we provide terms of insurance.

The costs of special situations insurance will typically comprise the premium, applicable premium taxes, an underwriting fee, and brokerage.

A single, up-front premium is payable. Our minimum premium is typically £100,000 (or equivalent). The applicable insurance premium tax will depend on the location of the policyholder. However, we consider each transaction on its own merits and we can offer a lower premium on an exceptions basis.

Our external expenses vary according to the complexity/size of the risk and the scope of work required. Typically, our external expenses are £10,000 – £30,000 (or equivalent).

If you are using an insurance broker then the structure of their brokerage will depend on the agreement they have with you. Typically, brokerage is a percentage of the premium (and we will provide a gross premium quote, i.e. inclusive of brokerage), but some brokers work to a fixed fee with their clients.

A special situations policy may include a retention (or excess). For example, in respect of the costs of litigation (if cover in this respect is sought) or such that the insurance provides cover above a certain financial threshold. Otherwise the retention will be nil.

We can offer a seven-year policy period.

When seeking a quote for special situations insurance the following information should be provided: (i) an outline/description of the risk, (ii) details and analysis of any facts relevant to the risk (both positive and negative), (iii) a calculation of the limit of insurance required, (iv) details of what insurance is required (e.g. who is the insured, policy period, limit of liability, etc), and (v) copies of any legal/technical advice in relation to the risk.

Please visit Quotes to seek terms of insurance.

We do not currently offer insurance either to USA insured persons or in respect of purely USA risks. If the legal risk to be covered is not a USA legal risk but the ultimate beneficiary of the policy is a USA person, we may be able to propose a workable insurance structure. We are particularly experienced with offering structures for USA asset managers making inbound European investments.

Beazley will be primarily responsible for claims handling. They are a highly regarded insurer and have an award-winning claims team that has dedicated claims handlers for transactional insurance risk. Beazley specialise in dealing with complex, multi-jurisdictional matters.

The senior underwriter assigned to your transaction will assist with each step of the claims process.

See Claims for more information.