Tax Liability Insurance helps a taxpayer reduce or eliminate a contingent tax exposure arising from the tax treatment of a transaction, investment or other activity where the underlying legal conclusions supporting that tax treatment may be subject to future challenge by the relevant tax authorities. Tax Liability Insurance effectively provides certainty to taxpayers in particular areas where there is uncertainty in the application of the tax laws.
Highly customized coverage can address:
Federal, state local or foreign tax exposure
Expenses of outside legal advisors or accountants needed to resolve disputes with tax authorities
Gross-up taxes payable with respect to insurance proceeds
Interest and non-criminal fines or penalties related to any actual tax liability determined
Up to $20 million in limits for any one transaction, with larger limits available on a case by case basis
Pricing and retentions are structured on a case by case basis, based on factors such as the nature of the transaction, strength of tax position, and structure of the insurance program
Policy period generally aligns with the applicable statute of limitations
Policies are tailored to meet the specific needs of the client
Dumont Insurance Brokers, Corp. 459 Columbus Ave, Suite 385 New York, NY 10024 V 212-873-5484 | F 212-669-1518