Underwriting Focus and Process
We tailor our service to your needs. We often begin our substantive work when the signing date is within sight, as this is when sufficiently developed transaction documentation is available. But we are very happy to get involved earlier in the process, at the discretion of the deal principals.
We often work with sellers and their advisors before they go to market to advise on the best way to structure an insurance solution in the context of the wider corporate transaction. We are also very used to working with bidders in relation to the use of insurance as a tool to differentiate them from their competitors in an auction.
The precise timing to complete the process depends upon the readiness of the underlying transaction and its size and complexity, with a period of three or four days usually being sufficient to complete our work.
We are acutely aware that principals and their advisors are focused on finalising the underlying transaction at the time that our underwriting is underway, and always seek to make our process as non-intrusive and efficient as possible.
An indication of a typical process for a Warranty & Indemnity, Tax Liability or Contingent Liability policy is:
Execution of a Confidentiality Agreement, an Expense Agreement, and Hold Harmless Letters. Brockwell is then granted access to available transaction documentation. Issuance by Brockwell of base standard policy terms.
- Review of material transaction documentation by Brockwell with particular focus on the acquisition agreement, disclosure letter and due diligence reports in case of a Warranty & Indemnity policy or the relevant opinions and other supporting documentation in case of a Tax Liability or Contingent Liability policy.
Issuance of underwriting questions. Review of questions by the transaction team in preparation for the underwriting call.
If necessary, an underwriting call with the transaction team, and issuance of policy with bespoke deal terms incorporated.
- Negotiate and sign policy.