Although it is hard to forecast when the COVID-19 crisis will finally come to an end, one thing is certain:  Even before that time, a lot of companies will see their balance sheets severely weakened by the prolonged closures, stay-at-home orders and downturn to the economy.  An impaired balance sheet can adversely affect a company’s toolbox for addressing the underlying problems in numerous ways, from making it harder to attract capital investments or secure loans to decreasing a company’s value on a sale of the business.

An often overlooked and effective strategy for improving a company’s balance sheet is using specialized insurance products to replace all or a portion of the company’s balance sheet reserves with insurance.  In addition to removing or reducing the reserves, insurance has the added benefit of being a tax-deductible expense.

In this One-Hour Briefing, Joseph Ehrlich, National Practice Leader for Private Equity, Family Office and M&A at Beecher Carlson Insurance Services, LLC will discuss:

    The uses of various insurance products to effectively eliminate or minimize balance sheet reserves, including
        Credit insurance
        Tax insurance
        Litigation insurance and
        Specific Contingency insurance
    How using Intellectual Property insurance can help companies maximize borrowing basis for certain IP-backed loans
    The uses of Tax Insurance to limit exposure for tax credit backed securities
    The process for obtaining coverage, including underwriting considerations, costs, and timelines for binding coverage

Program Level: Update

Intended Audience: Outside attorneys, in-house counsel, financial advisors, accounting professionals and other allied professionals

Prerequisites:  None

Advanced Preparation: None