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Reps and Warranties Insurance in Healthcare Transactions: Shifting Liability Risks

Evaluating When Insurance is Appropriate, Negotiating Coverage and Exclusions

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, October 18, 2022

Recorded event now available

or call 1-800-926-7926

This CLE course will guide healthcare counsel on using representation and warranties insurance in healthcare transactions. The panel will examine when such insurance is appropriate, how it can be best utilized, and what should be covered. The panel will offer best practices for leveraging reps and warranties insurance in healthcare transactions.

Description

As a heavily regulated industry subject to significant federal and state regulatory oversight, healthcare transactions come with unique risks. Those risks include fraud and abuse claims, allegations of privacy and security breaches, or licensure. Parties to healthcare transactions are turning to representation and warranty insurance to help minimize that risk.

Traditionally, part of the purchase price is held in escrow to protect the buyer from potential loss. When using rep and warranty insurance, a significant portion, if not all, of the liability risk shifts from the seller to the insurance company, thereby both providing the buyer with protection and allowing the seller to realize more of the purchase price at closing.

Healthcare counsel must be aware of when rep and warranty insurance is appropriate for the transaction and of the potential issues that can arise in structuring and negotiating coverage and exclusions.

Listen as our authoritative panel of healthcare counsel examines the role of rep and warranty insurance in healthcare transactions and when it is appropriate and when it isn't. The panel will also discuss the considerations the parties should weigh and the role of insurance coverage. The panel will look at examples of when the insurance has been beneficial and when it's been problematic. It will also offer best practices for leveraging rep and warranty insurance in healthcare transactions.

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Outline

  1. Rep and warranty insurance in healthcare transactions
    1. When is it appropriate?
    2. How can it be utilized?
    3. What should be covered?
  2. Principal considerations when determining to use rep and warranty insurance
  3. Best practices for structuring and negotiating rep and warranty insurance
    1. Coverage
    2. Exclusions

Benefits

The panel will review these and other key issues:

  • What potential benefits and pitfalls are associated with rep and warranty insurance in healthcare transactions?
  • How can rep and warranty insurance be used to mitigate risk and complete transactions?
  • What are some critical issues when negotiating rep and warranty insurance coverage and exclusions?

Faculty

Arthur, Andrew
Andrew M. Arthur

Attorney
Morgan, Lewis & Bockius

Mr. Arthur represents public and private companies and institutional investors in a variety of corporate transactional...  |  Read More

Hearn, Curtis
Curtis R. Hearn

Partner
Jones Walker

Mr. Hearn has served as co-lead of the firm’s Corporate Practice Group for 20 years. He has represented buyers...  |  Read More

Chan, Tony
Tony Chan

Partner
Orrick

Mr. Chan's practice focuses on advising companies and investors in the life sciences and tech sectors on strategic...  |  Read More

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