A mid-size technology parts manufacturer with global sales over $20,000,000 was planning to sell a division using an“assets only” approach.
Management was understandably nervous about ongoing liabilities for sold products already in the marketplace. While the company could relatively easily continue to carry a sold division’s name on ongoing insurance when operations of the parent company are continuing, the challenge was to put a program in place prior to the sale that would protect the officers and boards once the company had folded.
N.P. James Insurance Agency recommended securing continuing insurance risk protection for the offi cers and board. A team including an underwriter was put together to work with the company’s legal representatives to structure a program that would cover past products once the company was sold.
The technology manufacturer moved ahead with the sale after securing a specifically designed and well-defined program to cover the identified risks.