Specialty
Contact the Speciality insurance team today to find out more
email usEndemic risk insurance
MNK Re has designed highly tailored solutions for epidemic risk providing for balance sheet protection and revenue stability. Leveraging the deep expertise of its partners in the disciplines of epidemiology, statistics, risk modelling and claims management, the policy is specifically designed to cover future epidemic outbreaks of unknown (novel) viral pathogens and known diseases such as Ebola and Coronaviruses, as well as unknown newly emerging viral diseases, providing coverage for non-damage business interruption. Please note that COVID-19 or 19 (SARS CoV 2) and future outbreaks of this specific form of Coronavirus are excluded under this arrangement.
Standard policies pay claims for business interruption losses only following physical damage and typically excludes communicable diseases. In many cases, the financial consequences of an epidemic outbreak have not been covered by insurance, but retained by companies, leading to significant losses or even to bankruptcy in some cases. The current outbreak and its unparalleled consequences have served as a wake-up call for risk managers not to underestimate the potential impact of epidemics or pandemics on the balance sheets of their companies.
Please contact us to find out more about how we can help you protect your business from future incidences of epidemics/pandemics.
Coverage
- Business interruption cover
- Delay in start up cover (DSU)
- Modifiable claim triggers
- Post pandemic / Epidemic public relations
- Epidemic expert consultation
- Early prevention cover
- Temporary site closure cover
- Event cancellation cover
Target markets
- Private sector including - hospitality, tourism, manufacturing, retailing, mining, construction projects, infrastructure, healthcare and education, event organisers
- Public sector
- Financial institutions
Geographical area
Worldwide
Intellectual Property insurance
Intellectual property (IP) insurance covers companies for the legal costs associated with pursuing infringement or theft of IP. It also covers legal defence costs for policyholders accused of IP infringement or theft. IP infringement risks include the risk of infringing any patent, mark, copyright, design, domain name, or miscellaneous IP rights. This third party cover is provided on a modular basis across the following sections (subject to policy terms, conditions and exclusions). IP insurance helps your business defend itself against claims of IP infringement and can help you pursue those who are infringing on your patent, copyright or trademark.
Coverage
IP insurance cover is provided for the legal fees and expenses or damages (including settlements), or both, incurred in defending any judicial proceedings brought against the insured:
- Alleging that the Insured has infringed a third party’s intellectual property through dealing in any of their products or services, or through their use or licensing of any of their own intellectual property
- Alleging that through dealing in any of their products or services they have directly justified the imposition of an injunction
- Alleging that the insured has made groundless allegations of infringement against a third party in writing relating to any patent, copyright, design or mark
- Directly disputing or threatening the Insured’s rights in or ownership of their IP
- The bringing of any counterclaim by the Insured to a judicial proceeding listed above
What is Intellectual Property Insurance
IP insurance covers companies for the legal costs associated with pursuing infringement or theft of IP. It also covers legal defence costs for policyholders accused of IP infringement or theft. There are two basic types of IP insurance:
- Infringement defence – this is the most popular type of IP insurance. It covers policyholders for infringement claims brought against them.
- Abatement enforcement coverage – this coverage gives IP owners - the insureds - the financial resources to enforce their IP rights and pursue infringement claims.
Geographical area
Worldwide
Residual value insurance
MNK Re Limited provides support for residual value insurance (RVI) or residual value guarantees (RVG) for aircraft, shipping, motor, commercial real estate and other assets. Residual value insurance protects policyholders against unforeseen loss of value of an asset by guarantying a future value. Residual value insurance may be used to ensure asset value, to obtain better financing terms or in corporate accounting. We work closely with our clients and partners providing residual value insurance (RVI) to enhance and add collateral support solutions to financing arrangements for asset based transactions. RVI provides the asset owner and/or their financiers with the certainty of a declared asset value at a pre-determined time in future, an invaluable means of balancing exposures in volatile markets.
At MNK Re, every enquiry is treated on an individual and ‘case-by-case’ basis to ensure that future asset values are properly agreed between our client and the underwriter. Wordings are carefully structured in a comprehensive and professional manner with a view to preparing for the clearest outcome in terms of asset valuation at the policy term – to meet the expectations of both parties. RVI policies are often structured to run concurrently with medium term financings, for example in conjunction with lease terms. Therefore, it is of paramount importance that at MNK Re we work exclusively with S&P rated ‘A’ minimum and equivalent global insurance markets and banks.
RVI & RVG
Residual value insurance (RVI) is an effective product used to secure balance sheet protection, enhanced accounting treatment and capital charges relief. In certain cases residual value guarantees (RVG) can be used to offer equally effective cover. RVI which is also known as residual value guarantee (RVG) provides absolute confidence to financial arrangements and can be used to compelling effect as a form of financial support to bring new ventures and leasing operations to successful launch through delivering tangible certainty for future asset values.
Benefits
- Eliminate lender / investor balloon refinance risk
- Guaranty equity investors a minimum return
- No minimum term
Target market
- Aviation
- Marine & energy
- Shipping
- Motor
- Rail rolling stock, including intermodal
- Commercial equipment, construction plant & heavy machinery
- Specialist medical equipment
- Commercial real estate
Geographical area
Worldwide
Warranty & indemnity insurance
In any merger and acquisition (M&A) transaction both buyers and sellers face a range of potential exposures during the deal negotiation and after the transaction has completed. Regardless of the thoroughness of the disclosure process and the due diligence undertaken, there is always an element of the unknown. Warranty and indemnity insurance also known as transaction liability insurance is a valuable tool to help buyers and sellers facilitate mergers and acquisitions (M&A) with a peace of mind. Transaction liability insurance is also known as representations and warranties insurance (R&W) in North America. Other forms of transaction liability insurance include tax liability insurance and contingent liability insurance.
Warranty and indemnity insurance responds to cover financial losses arising from breaches of the warranties, and in certain jurisdictions tax indemnities, provided to facilitate a variety of corporate transactions, especially mergers and acquisitions. In a transaction, either the buyer or the seller may be protected by W&I insurance. It aims to provide back-to-back cover for the seller’s liability under the SPA. The W&I policy “steps into the shoes” of the seller by responding to claims brought by the buyer for a breach of warranty or claim under a tax indemnity.
A buyer policy indemnifies with the buyer for losses caused by breaches of warranties and tax indemnities given by the seller in the SPA. It enables the buyer to claim directly from the insurer without first having to pursue the seller. A seller policy indemnifies the seller/s for losses resulting from claims made by the buyer for breaches of the warranties and tax indemnities given in the SPA.
Why buy warranty & indemnity cover
- To facilitate a clean exit for a seller who is either unwilling or unable to give contractual protections
- To enhance an auction bid by proposing W&I insurance
- To provide a greater limit of liability than a counterparty is willing or able to offer
- To increase covenant strength and manage recoverability risk (Lloyd’s Syndicates are all rated A by AM Best or A+ by Standard & Poor’s and Fitch)
- To provide an alternative avenue of recourse (e.g. a private equity sponsor may not wish to sue its management team)
- To release committed capital (e.g. where a fund has given contractual protections, but intends to wind-up and return proceeds to investors).
Geographical area
Worldwide
Contact the Speciality insurance team today to find out more
email us