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Although it is hard to forecast when the COVID-19 crisis will finally come to an end, one thing is certain: Even before that time, a lot of companies will see their balance sheets severely weakened by the prolonged closures, stay-at-home orders and downturn to the economy. An impaired balance sheet can adversely affect a company’s toolbox for addressing the underlying problems in numerous ways, from making it harder to attract capital investments or secure loans to decreasing a company’s value on a sale of the business.
An often overlooked and effective strategy for improving a company’s balance sheet is using specialized insurance products to replace all or a portion of the company’s balance sheet reserves with insurance. In addition to removing or reducing the reserves, insurance has the added benefit of being a tax-deductible expense.
In this One-Hour Briefing, Joseph Ehrlich, National Practice Leader for Private Equity, Family Office and M&A at Beecher Carlson Insurance Services, LLC will discuss:
- The uses of various insurance products to effectively eliminate or minimize balance sheet reserves, including
- Credit insurance
- Tax insurance
- Litigation insurance and
- Specific Contingency insurance
- How using Intellectual Property insurance can help companies maximize borrowing basis for certain IP-backed loans
- The uses of Tax Insurance to limit exposure for tax credit backed securities
- The process for obtaining coverage, including underwriting considerations, costs, and timelines for binding coverage
Program Level: Update
Intended Audience: Outside attorneys, in-house counsel, financial advisors, accounting professionals and other allied professionals
Advanced Preparation: None