White Paper / Risk Management
Environmental issues in a mergers and acquisition transaction
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Imagine that you are in the process of buying a company with potential environmental issues. While finalizing the purchase of the target company, you procure a representations and warranties (R&W) insurance policy to enhance the limited indemnity given by the seller. Six months after the transaction closes, an environmental issue arises at one of the acquired sites. The matter was undisclosed and the clean-up costs will exceed $1 million. Is there insurance available to cover your loss?

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