PRODUCTS AND SERVICES
Tax Liability Insurance
BlueChip’s tax insurance policies offer critical protection against potential challenges.
Tax liability policies insure against the potential adverse outcome of known tax risks. In the realm of M&A, tax liabilities can derail transactions, causing significant financial and reputational damage. Our policies can deliver peace of mind to buyers and sellers in the event of potential disputes.
BlueChip’s underwriting process for Tax Insurance involves:
- An extensive and bespoke review, assessing exposures of each risk.
- Upon engagement, our underwriting team and counsel review due diligence reports, associated documents, and files in the virtual data room.
- BlueChip and our counsel lead an underwriting call with the insured and its third-party advisors.
- Following the underwriting call and prior to signing, our team works expeditiously and communicates effectively with clients, law firms, and brokers to have your BlueChip Policy ready to bind upon order.
Risks may include tax credits, pre-closing taxes, S-Corp status, capital gains vs. ordinary income, loss transactions, NOLs, and more.
Tailored and Comprehensive Coverage
- Tax credits
- Pre-closing tax exposures
- Transfer pricing disputes
- Entity classification issues (e.g., S-Corp status)
- Capital gains vs. ordinary income characterization
- Partnership capital account allocations
- Loss transactions
- Utilization of net operating losses
- Tax owed
- Interest, fines, and penalties
- Legal fees and defense costs
- Taxes assessed on the insurance proceeds received (“gross-up”)
Secure Your Tax Positions Today
In the high-stakes world of M&A and multi-jurisdictional tax planning, having tax liability insurance is not just a precaution—it’s a necessity. Protect your investments, ensure smoother transactions, and confidently execute tax strategies with the backing of BlueChip’s tax liability insurance policies. Don’t leave your financial future to chance; secure your peace of mind and contact BlueChip today.