A Discussion with Concord Specialty Risk Regarding the Coverage Afforded Under R&W Policies v. Tax Indemnity Policies

Tax indemnity coverage is no longer sitting in the shadows. Although tax insurance pre-dated the existence of R&W insurance, it nevertheless sat dormant for decades while R&W insurance grew slowly and then exponentially. Over the past two years, however, with the use of tax coverage to facilitate equity investor tax credit transactions, the coverage made its way into the spotlight and has been enjoying consistent growth ever since.

We thought it would be helpful to have the benefit of an underwriters’ perspective on how both types of policies should be viewed as respects tax matters and, specifically when separate tax policies should be considered. We approached David S. De Berry, CEO of Concord Specialty Risk, one of the top insurers of R&W Insurance and the industry leader in tax indemnity insurance, to get his perspective on tax risks and how best to address them.