Tax Opinion Insurance

Gulf Insurance Group, a subsidiary of Travelers Property Casualty has introduced a tax opinion product insuring for the possible loss of anticipated tax benefits associated with corporate transactions.

Insurance for tax opinions may make sense when there is not enough time for a company to go through an Internal Revenue Service private letter ruling process or when a private letter ruling is simply not available. In such situations, the company may be subject to unanticipated taxes, interest and possible penalties if an IRS audit disagrees with a tax professional's interpretations.

The policy may also include coverage for related litigation costs, interest and penalties. Gulf underwrites each tax opinion and transaction individually. Tax opinions for most corporate transactions will be considered as long as the activity is not structured principally for the purpose of receiving tax benefits. Coverage limits of up to $30 million are available and additional limits can be arranged.

For more information, contact Gulf Insurance Group by telephone: 212-816-6677 or 212-816-5762, or by fax: 212-816-5147.