Distressed companies and industries create unique challenges from both personal and corporate insurance perspectives, which often result in coverage uncertainty and irrational pricing.
To meet these challenges, clients need insurance brokerage advice from an experienced team who has a skillset in both insurance and bankruptcy.
JLT Specialty USA’s Special Situations Group (SSG) consists of restructuring professionals who focus solely on insurance solutions for distressed and bankrupt companies.
Our dedicated and experienced specialists (including former attorneys, bankers, consultants and underwriters) guide clients through the unique personal asset risks that arise in a distressed environment, as well as corporate issues such as collateral recapture, transactional liability, surety needs and complex claim resolution.
WHAT WE DO
Our areas of impact are:
- Protecting directors’ and officers’ (D&O) personal assets in a time of crisis
- Developing strategies to obtain the best available pricing
- Designing solutions to increase company cash flow and liquidity
- Using insurance to mitigate risk in distressed M&A transactions, increasing enterprise value
- Ensuring post-restructuring insurance programs are appropriate for NewCo risks.
Our specific services include:
- Review and audit of the current D&O program, at no cost, with a focus on personal asset exposure and protection against a distressed litigation scenario
- Placement and/or improvement of D&O insurance and runoff coverage prior to, on the eve of or after a bankruptcy filing
- Manuscript policies for liquidating trustees and receivers covering claims arising out of alleged breach of duty and/or negligence in the provision of professional services
- Strategies to unlock excess cash collateral posted to insurers resulting in increased liquidity and/or improved return for creditors
- Comprehensive analysis of (and due diligence on) all insurance programs to identify coverage deficiencies, ways to improve enterprise value and arbitrage opportunities
- Placement of, and improvements to, post-restructuring insurance programs to align with NewCo structure and address post-bankruptcy issues
- Placement of insurance policies to address third-party concerns around representations/warranties, litigation liabilities, tax issues, environmental issues, successor liability or fraudulent conveyance risk in M&A transactions
- Resolution of complex insurance claims.
While most individual brokers may deal with a distressed situation a few times throughout their career, JLT’s dedicated SSG team advises clients through these difficult situations every day.
JLT has supported 30% of the 20 largest U.S. bankruptcies in history (as determined by prepetition assets).
With years of experience assisting distressed organizations, we provide guidance and deliver proven solutions that allow your management team and retained professionals to make informed, rational decisions on insurance matters — especially during a time of crisis and seemingly limited options.