Willis Towers Watson Launches New Anti-Trust Insurance Product

Willis, the retail brokerage division of Willis Towers Watson, has launched Merger Protect, a specialized insurance product designed to mitigate costs associated with U.S. antitrust regulatory examination during merger and acquisition activities. This innovative coverage targets both buyers and sellers, including their advisors, for transactions valued at $5 million or more. Aimed at enhancing risk management strategies, Merger Protect addresses the need for financial protection amidst complex regulatory compliance requirements.

This insurance policy is crafted to reimburse specific expenses incurred when a Hart-Scott-Rodino Act Second Request is issued by the United States Federal Trade Commission or Department of Justice. Additionally, Merger Protect may extend coverage to expenses arising from related enforcement actions, according to a statement released by the broker. Such expenses include external legal costs encompassing antitrust counsel, fees for consultants, economists, and industry specialists. Moreover, the policy covers data management expenses, including e-discovery, document review, regulatory filings, and witness preparation.

Aartie Manansingh, who spearheads alternative asset insurance solutions at Willis, noted, "A Second Request doesn’t mean a deal is broken, but it does create financial uncertainty that comes with a regulatory deep dive." Policies are typically initiated early in reportable deals, providing essential coverage if a Second Request arises, subject to retention, sublimits, and other policy conditions. However, it is important to note that the insurance does not extend to costs related to divestitures, operational changes, or any remedies required by regulators.