Tax Insurance — As Good as an Indemnity?

The idea of using insurance to protect against tax risks in mergers and acquisitions (M&A deals) is one which has been mooted over the past few years but to our knowledge relatively little used. Recent experience and contact with insurance brokers and underwriters involved in the tax insurance sector point to this position changing with the capacity in the insurance market willing to take on tax risks apparently increasing. This article looks at how tax insurance might be used in the future specifically to replace or support the traditional tax indemnity against tax of companies bought in M&A...