Hostile takeover

If the independence of a company is of strategic importance then hostile takeover insurance can provide, at a reasonable cost, the resources required to defend that independence.

A hostile bid or proxy contest can be a significant drain on management time and resources, even if successfully defended, and can have a long-term damaging impact.

Hostile takeover insurance helps companies to safeguard their independence by providing the security of indemnity for the costs and expenses incurred in successfully defending a hostile takeover.

Coverage

Covered expenses include:

• Fees of external professional services such as: accountants, investment bankers, lawyers and public relations consultants
• Cost of printing, advertising, mailing, travel by employees, officers, directors and professional advisers

Each risk is quoted separately following individual application and assessment by underwriters.

Special purchase options

Hostile takeover insurance can be purchased in two ways to give companies maximum flexibility:

• Full coverage at full annual premium
  or
• Purchase of policy at a much lower premium cost, with a provision that allows the policyholder to convert to a full coverage policy, with a higher additional premium, should a hostile bid commence.