Merger and acquisition activity reached record highs in 2006, and the trend shows no signs of abating. Buying or selling a business or assets can be a critical component of a company's strategy — but it can also raise a host of insurance and risk management issues.

Sellers, for instance, need to consider their future liabilities for products made before completion of the deal. Since occurrence-based products liability insurance responds only to loss events that occur while the policy is in force, sellers who stop buying insurance when they exit the business may not be protected against future bodily injury or property damage caused by products manufactured, sold or distributed prior to the date they sold their business.

Chubb's Discontinued Products Liability insurance, part of Continuum from Chubb^SM, is designed to provide insurance protection in the future from products made in the past. Highlights of the policy include the following:

• Protection for bodily injury and property damage occurring up to 10 years in the future
• Primary and follow-form Excess liability limits
• Worldwide protection available

Buyers, of course, face risks of their own. Among them, the buyer of a company may be held responsible for the consequences of events that occurred long before the acquisition, even in an "assets only" purchase. Typical liability insurance may not adequately protect the buyer against claims arising out of loss events that predate the acquisition.

Chubb's Successor Liability insurance, also part of Continuum from Chubb, is a valuable tool for protecting against such liabilities. Among the policy highlights are:

• Extended claim reporting periods, often up to 10 years
• Insurance is noncancellable
• Primary and follow-form Excess liability limits
• Worldwide protection available

Discontinued Products Liability insurance and Successor Liability insurance are just two of the ways Chubb can help you protect your clients from exposures arising out of mergers and acquisitions. Talk to your Chubb underwriter about the many insurance products available to help your clients focus more on M&A opportunities and less on risks.