Aon Group's Transaction Liability Unit has increased its business by more than 300% since formation in February.
Unit director Nathan Sewell attributed the increase to rising concern among companies about possible losses from corporate transactions.
The unit provides a range of specific covers such as tax opinion liability, warranty and indemnity, loss mitigation/known loss capping and initial public offering.
Sewell said the unit was in demand because, as sales, mergers and share issuances became more complex, litigation increased as a result of the due diligence process.
“It's possible to ‘cap' a known loss and enable corporate organisations to favourably restructure their balance sheet by transferring a contingent liability for a fixed premium,” he said.
“While other risks may be more straightforward to insure, we still recognise that a dedicated specialist team with appropriate professional skills is a must.”
