DOXA
DOXA

Tax Liability Insurance

Tax Liability Insurance protects insureds against known tax risks being successfully challenged by a taxing authority. It is customizable coverage for risks that may either be standalone or related to an acquisition but fall outside the reach of Representations & Warranties.

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HOW WE CAN HELP

PROTECT THE POSITION
INSULATE THE RISK

Tax Liability insurance steps in when a specific, known tax position is at risk of challenge — covering the financial exposure if a taxing authority successfully disputes the treatment adopted by the insured. Unlike Representations & Warranties, Tax Liability coverage isn’t limited to M&A transactions and is frequently related to standalone tax exposures. It can be used by private equity funds, asset managers, corporations, or even individuals to protect tax positions across a range of risk types.

Clients can use Tax Liability insurance to:

  • Protect a specific tax position from successful challenge by a taxing authority
  • Transfer known tax risk to an insurer rather than holding it on the balance sheet
  • Enable deals to proceed where a tax position might otherwise create friction for either party
  • Cover risks R&W doesn’t reach — including known issues identified in diligence
  • Support PE funds and corporations managing standalone tax exposure outside of M&A
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COVERAGE BESPOKE
BY RISK TYPE UP TO
FULL TAX EXPOSUREE
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LIMIT RANGES:
$5M-$50M
RETENTIONS:
Minimal, typically
contest costs only
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Terms
7 to 10 years
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WHAT TO SUBMIT

YOUR TARGETED QUOTE STARTS HERE

Tax Liability submissions vary by risk type — the more detail you provide about the specific tax position and its history as well as the ultimate client and its goals, the more targeted your quote will be.

To request a quote, include:

  • Coverage details — limit(s), retention(s), policy length, inception date, and any risk-specific enhancements
  • Description of the tax position — including the relevant jurisdiction, tax treatment adopted, and the basis for that treatment
  • Supporting documentation — including legal opinions, tax filings, and any correspondence with taxing authorities
  • Transaction information if applicable — enterprise value, timing, deal parties and their advisors

READY TO DISCUSS A TAX LIABILITY DEAL?

Whether you are evaluating a tax position, seeking capacity, or looking for a trusted underwriting partner, our team is ready to help.