Chubb Increases Maximum Representations And Warranties Liability Policy Limit To $25 Million

Chubb Group of Insurance Companiesef=http://www2.propertyandcasualty.com/storefronts/chubb.html><%=company%> has increased the maximum limit available with its new Representations and Warranties Liability Insurance policy from $10 million to $25 million. Introduced last month at the Risk and Insurance Management Society's annual conference in San Diego, the policy helps protect companies against certain undiscovered liabilities associated with buy/sell transactions.

"The initial response to our Representations and Warranties Liability Insurance policy has been extremely encouraging," said Jack Kuhn, a vice president of Chubb & Son and an underwriting manager for its Executive Protection Practice. "We've decided to increase the maximum limit to $25 million to accommodate a broader spectrum of transactions."

The policy helps protect a seller from financial loss resulting from a lawsuit caused by a breach of one or more insured representations or warranties. A seller makes contractual representations and warranties regarding a company's financial statements, accounts receivables, taxes, employee benefits, intellectual property and other factors that form the basis of a buyer's purchase decision.

Member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 5,000 independent agents and brokers. Chubb's global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.