What is Contingent Contract Protection?

This unique contingency insurance product from Lloyd’s, London has the amazing ability to provide up to $20 million of coverage for third party business needs that the domestic life insurance market cannot satisfy.  Contingent Contract Protection, as its name implies, reimburses the policy owner for contractual financial obligations triggered by any of the following events happening to the Insured Person:

• Death
• Disappearance or
• Permanent Coma

This product is an ideal alternative to life insurance for funding:

• Buy-Sell Agreements
• Share Redemption Agreements
• Divorce Contracts or
• Loan Agreement insurance requirements

Where the proposed life insured is uninsurable in the regular market for reasons such as:

• Medical or lifestyle history
• Criminal history
• Short term coverage requirements
• Participation in hazardous occupations or avocations
• Foreign travel, citizenship or residency, including war zones
• Immediate coverage needs i.e. underwriting within 48 hours or while traditional insurers are completing their underwriting process.

When your business life case is declined, discover how Contingent Contract Protection insurance can help:

Buy-Sell – Medical History

A business required $10.5 million of coverage on one of the owners to fund the buy-sell provisions of the shareholder agreement. He was declined by the regular market due to a history of kidney disease. We provided $10.5 million Contingent Contract Protection coverage, with a kidney exclusion.

Loan Collateral – Travel Issue

A lender required $5M of collateral life coverage on the chief technology officer of a corporation as a condition of a loan. He was declined by the regular market because of very extensive foreign travel, including travel into countries with significant civil unrest. We provided $5 million Contingent Contract Protection coverage without a travel exclusion including war risk coverage.

Contractual Agreement – Immediate Need

A Canadian company purchased a US corporation for $7M. Part of the purchase price was to be paid as an earn-out, payable over 3 years. The agreement specified that the entire remaining purchase price was to be paid immediately in the event of death or disability of the previous business owner. Coverage was required immediately as it was a condition of closing the deal. We provided Contingent Contract Protection (as well as disability insurance) to fund this obligation.

For more information or a quote on this products, please visit our website or contact us directly.