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Tax Insurance

Navigating the complexities of tax regulations can be daunting, but tax insurance offers a strategic safeguard for your financial peace of mind. Our specialized tax insurance solutions are designed to protect against specific tax positions, ensuring you are covered when it matters most.

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Tax Insurance

Key Features

Insurance Covering Specific Tax Positions

Our policies are tailored to cover distinct tax positions, providing clarity and confidence in your financial decisions.

Issue is Current or Historic

Whether dealing with existing tax issues or those from past transactions, our insurance solutions offer robust protection, addressing both current and historic concerns.

Issue is Known and Quantifiable

Coverage is available for tax issues that are identifiable and can be precisely measured, ensuring transparency and predictability in your insurance needs.

Future Risks Coverable in Limited Circumstances

While primarily focused on known issues, our policies can extend to certain future risks, offering a comprehensive safety net under specific conditions.

When to Consider Tax Insurance

During an M&A Process:

Tax insurance is crucial in mergers and acquisitions to mitigate risks and ensure smooth transactions.

Outside of an M&A Process:

  • Restructurings: Protect your business during significant structural changes.
  • Fund Wind-Downs: Facilitate efficient distribution of Fund assets.
  • When a Historical Risk is Detected: Address any identified past risks to safeguard your financial future.

What Are the Benefits?

During an M&A Process:

  • Unlock deal value
  • Reduce execution risk
  • Enable clean seller walkway
    • Avoiding indemnities, holdbacks, and escrows

Outside of an M&A Process:

  • Mitigate financial impact of historical risks
  • Mitigate risk on ongoing transactions
  • Streamline future M&A processes

Individuals:

  • Mitigate income tax risks
  • Mitigate wealth transfer tax risks

What Does It Cost?

  • Competitive Rates: Insurers in this field are highly competitive, leading to reduced rates.
  • Cost-Effective: Rates are issue-specific, but typically range between 1-5% of the coverage amount, with a minimum premium of $100 250k, depending on insurer, and an underwriting fee of $40-100k, depending on issue.
  • Comprehensive Coverage: Our policies cover underlying tax, interest, and penalties where applicable, providing extensive protection against various tax-related liabilities.

Why Choose Our Tax Insurance?

  • Expertise: Our team comprises seasoned professionals with in-depth knowledge of tax regulations and insurance, ensuring you receive the best advice and coverage.
  • Customization: Each policy is tailored to meet your unique needs, reflecting the specific tax positions and risks pertinent to your situation.
  • Security: Gain peace of mind knowing that you are protected against unforeseen tax liabilities, safeguarding your financial interests.
  • Flexibility: With options to cover current, historic, and some future risks, our insurance solutions are adaptable to a wide range of scenarios, providing comprehensive protection.

Who Can Benefit?

  • Corporations
    • Public or private
  • Partnerships/funds
  • Individuals

Contact Us

We are committed to helping you navigate your tax-related challenges with confidence and ease. To learn more about
how our tax insurance solutions can benefit you, please reach out to our expert:

Headshot of Alex Hayes, the Tax Insurance Practice Group Leader for Horton's Risk Advisory Solutions department.

Alex Hayes

Tax Practice Group Leader

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Alex Hayes is the Tax Insurance Practice Group Leader for Horton’s Risk Advisory Solutions department.

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People First Insurance Brokers

Find out how our services can assist you in becoming better prepared and protected for what comes next.

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Jason Haas, Taft-Hartley, insurance broker.